Market overview “Travel services (airplane tickets)” category User interest in category
Ø Query dynamics Ø User interest growth in flight tickets Ø User interest on air tickets in regions Ø Search volume forecast Ø Conversions growth in category User interest in category Queries related to traveling vary from 1 to 1,7% of total Yandex queries. In July, during holiday season, “traveling” queries share increases significantly: user activity drops, while interest in category rises.
Queries share related to flight tickets in Queries share related to traveling in total overall category queries amount of Yandex queries 1.8% 1.6% 21% 1.4% 46% Air Tickets 1.2% 1.0% 0.8% Hotels 0.6% 0.4% Package 0.2% Tours 0.0% 33%
Queries on flight tickets made approximately 21% of total amount of queries related to traveling in 2013.
4 In 2013 user interest in category increased by 25% In 2013 user interest in flight tickets went up by 25% (based on statistics from January to July). +25% 2,500,000 Flight tickets queries
2,000,000
1,500,000
1,000,000
500,000
0 2011-11 2011-11 2011-07 2011-07 2011-08 2011-09 2011-10 2011-12 2012-11 2012-01 2012-02 2012-03 2012-04 2012-05 2012-06 2012-07 2012-08 2012-09 2012-10 2012-12 2013-01 2013-02 2013-03 2013-04 2013-05 2013-06
5 User interest shifted towards online booking
Share of users, who directly indicated their willingness to book flight ticket online, increased from 3% to 5% and continues to grow. However, share of these users reduces during holiday season (in summer).
9%
8%
7%
6% Share of queries 5% on online booking in total amount of 4% queries on air 3% tickets
2%
1%
0%
6 Dynamics of user interest growth in category In 2013 interest growth in category has accelerated (compared to 2012). The number of queries has increased steadily by ≈ +19-25% (depending on group requests) annually.
The growth rate of the amount of queries in category (in comparison to 2011)
160%
140%
120% Russia 100%
80% CIS
60% Russia: regions (except 40% Moscow and Saint- Petersburg) 20%
0% 2011 2012/2011 2013/2012
7 Interest towards category in regions: CIS, Russia In 2013 the number of queries on flight tickets most actively increased in Russian regions (+26%) and CIS (+20%)*. The slowest growth rate was in the central regions of Russia (+16%).
200%
180%
160%
140%
120% Moscow and Saint- Petersburg
100% Russia (except Moscow and Saint-Petersburg) 80% CIS (except Russia) Growth rate (%) Growth
60%
40%
20%
0%
8 * (in comparison to 2012) Interest towards category in Russian regions Share of queries from users of the regions with the highest internet penetration (Moscow and St. Petersburg) is gradually reducing. The audience is gradually being reallocated in favor to the regions.
100%
90%
80% 42% 44% 44% 43% 43% 44% 47% 47% 46% 70% Russia (except Moscow and Saint- 60% Petersburg)
50% Moscow and Saint- 40% Petersburg
30% 58% 56% 56% 57% 57% 56% 53% 53% 54% 20%
10%
0% Autumn 2011 Winter Spring 2012 Summer 2012 Autumn 2012 Winter Spring 2013 June 2013 July 2013 2011-2012 2012-2013
The total share of Moscow and St. Petersburg has dropped from 9 58% to 53%. Regional popularity
Saint-Petersburg, 12% of queries, Reg.popularity – 172%
Moscow, 33% of queries, Reg.popularity – 172%;
South region, 5% of queries, Volga region, 9,3% of queries, Reg.popularity – 87%; Reg.popularity – 80%; CIS, 9% of queries, Reg.popularity – 42%;
There is a fairly large margin of growth in regions. In Moscow and Saint- Petersburg the regional popularity of keywords on air tickets is 172% and 10 173%. In it the largest regions it varies mainly at the level of <99%. Forecast of interest growth in category In 2014 the interest growth in category will remain on the same level. The number of queries will increase by ≈ 16% (compared to 2013).
9,000,000 +16% +16% 8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Queries on airticketsRussia statistics,Querieson region:
11 In 2013 the total amount of conversions in category has increased by almost 8.5 times
Conversions from Direct by travel search engine websites* (redirecting to partner websites), has gone up by 9 times. Growth of other flight tickets booking services has increased by 12%.
Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Travel search engine website Airline ticket agencies
12 * Do not sell flights directly; instead, can be used to find the cheapest deal for a desired route after which users are automatically transferred to the airline or travel supplier’s website to make their booking directly Brand popularity dynamics
Ø Queries dynamics Ø Variation of interest in brands Ø Brand searching context Brand popularity dynamics
200000
180000 OZON.TRAVEL SKYSCANNER 160000 ANYWAYANYDAY
140000 MOMONDO 12TRIP 120000 AVIASALES DAVS 100000 TRIP.RU AVIACASSA 80000 BILETIX
60000 KAYAK BRAVOAVIA 40000 SENTURIA JIZO 20000 AMARGO NABORTU 0
In June 2013 Ozon.Travel became a leader and took the 1st place. Skyscanner moved to the 2nd place. Anywayanyday continued to keep
14 the 3d place. Wordstat.yandex.ru, July 2011 – June 2013
Variation in user interest in brands
Q2 2012 Q2 2013
-18% 28%
-40%
81% -21% 182% 18% 16% 36% 13% 130% 76% 81% -38% -45% -8%
15 Wordstat.yandex.ru, July 2011 – June 2013
Biggest brands search context (based on enclosed query statistics) In 5% of navigation queries (for example, «озон тревел ру») users specify the context in which they were looking for the brand.
5.6% 36.1% 10.5%
14.4%
23.8%
Reviews search - 36% Intended to book online - 24% Looked for cheap tickets - 14% Search engine - 11% Flight booking cancellation - 6% Bonuces - 3% Price comparison - 3% Mobile apps - 2% Free service - 1% Best service - 0,3% Fraud - 0,1% The main share of the search queries was connected to reviews search. Less likely users checked their concerns about fraud services and looked 16 for actions from aggregators. Biggest brands search context (based on enclosed query statistics)
Booking Reviews Obvious intention to Actions, Software for Best Cheap Fraud Choice by price Free of charge cancellation search buy discounts mobile phone
Kayak Skyscanner Anywayanyday Trip.ru Trip.ru Skyscanner Kayak Skyscanner Aviacassa.ru Kayak
Ozon.Travel Momondo Ozon.Travel Momondo Biletix Kayak Trip.ru Kayak Kayak Trip.ru
Trip.ru Anywayanyday Skyscanner Ozon.Travel Momondo Anywayanyday Anywayanyday Biletix Skyscanner Ozon.Travel
Biletix Kayak Aviacassa.ru Ozon.Travel Ozon.Travel Ozon.Travel Anywayanyday Momondo Momondo
Momondo Ozon.Travel Trip.ru Aviacassa.ru Aviacassa.ru Skyscanner Ozon.Travel Anywayanyday Biletix
Aviacassa.ru Biletix Biletix Anywayanyday Momondo Aviacassa.ru Aviacassa.ru Ozon.Travel Aviacassa.ru
Anywayanyday Aviacassa.ru Momondo Kayak Biletix Biletix Trip.ru Trip.ru Anywayanyday
Skyscanner Trip.ru Kayak Skyscanner Trip.ru Momondo Momondo Biletix Skyscanner
The least users trust has Trip.ru and Momondo – the share of searches for reviews of their work (including – obviously negative) is higher, than on average in category. Price criteria is the most important for users of SkyScanner.
17 Destination popularity
Ø Destination rating Ø Seasonal variations Ø Seasonal fluctuations structure Ø Leading destinations Ø International and domestic flights Most popular countries-destinations (Top-20, throughout the year)
25000 «Resort» destinations
Other countries 20000
15000
10000
5000
0 Italy USA USA Israel Egypt Spain Turkey Turkey Russia Cyprus Tunisia Tunisia Greece Ukraine Vietnam Vietnam Bulgaria Abkhazia Germany Montenegro
The most demanded flight directions are the "resort" countries (interest in them is mainly connected to package tours, instead of independent tourism): queries on them make up to 45% of all "country" queries.
19 Seasonal popularity of destinations
35000 14000
30000 12000
25000 10000 Bulgaria 20000 Turkey 8000 Ukraine 15000 Montenegro 6000 Germany Greece 10000 4000 Cuba Cyprus Maldives 5000 Italy 2000 China Tunisia 0 0 Abkhazia
User interest in category undergoes significant seasonal changes. In winter overall interest in category not only drops by 40% (in comparison with summer months), but its structure also changes. In autumn the number of queries falls by 2,5 times (compared to the summer months) on directions related to resort types of rest. Interest in some destinations (some European and CIS countries) has no 20 seasonal fluctuations. Seasonal popularity of destinations
Autumn 2012 Winter 2012-2013 Spring 2013 Summer 2013
Russia Russia Russia Russia Israel Bulgaria Bulgaria Bulgaria Germany Montenegro Montenegro Montenegro Finland Israel Turkey Turkey Turkey Spain Spain Spain Bulgaria Germany Israel Cyprus Italy Italy Italy Italy Montenegro Turkey Germany Israel Spain Finland Cyprus Greece China Cyprus Greece Germany Uzbekistan Vietnam Finland Abkhazia Cyprus China China Uzbekistan Egypt USA Armenia Finland USA Uzbekistan Uzbekistan Ukraine Vietnam Armenia USA USA Cuba Egypt Egypt Armenia Armenia Cuba Ukraine China India Greece Vietnam Tajikistan Tajikistan India Croatia Vietnam
21 Thailand Tajikistan Abkhazia Cuba Flight tickets interest in autumn Interest growth in South-East Asia
The directions with the greatest interest increase in fall (query growth in comparison to summer months) 2000 1800 South-East Asia 1600 Other countries 1400 1200 1000 800 600 400 200 0 India Egypt Austria Vietnam Vietnam Thailand Germany SriLanka Cambodia Singapore Philippines Uzbekistan Autumn is the season of user interest decrease in flight tickets (both in tourism category and air tickets segment). The number of queries increases only on 16 of the 60 major destinations. The main growth is accounted for India and South-East Asia countries. 22 Flight tickets interest in autumn Interest decline in resort areas
The directions with the greatest interest decline in autumn (query loss in comparison to summer months) 0
-2000 Italy Malta Spain Turkey Turkey Cyprus Croatia Greece Ukraine Bulgaria Armenia
-4000 Abkhazia Montenegro -6000 -8000 -10000 -12000 -14000
-16000 Resorts -18000 Other countries -20000 Most of all the number of queries on flight tickets to resorts decreases in fall.
23 Flight tickets interest in winter Interest growth in European resorts The directions with the greatest interest increase in winter (query growth in comparison to autumn months) 6000 European countries 5000 Other countries 4000
3000
2000
1000
0 Italy Malta Spain Cyprus Croatia Greece Ukraine Vietnam Vietnam Bulgaria Montenegro In winter the main growth is accounted for flights to European resorts. The query statistics on flight tickets in countries such as the UAE, Egypt, Turkey, Tunisia continues to fall. 24 Flight tickets interest in winter
The directions with the greatest interest decline in winter (query loss in comparison to autumn months)
0 -200 India Israel Egypt China Austria Tunisia Tunisia -400 Finland Tajikistan Tajikistan Germany
-600 Uzbekistan -800 -1000 -1200 -1400 -1600 -1800 -2000
With the general interest growth of tourism in Finland and Austria in winter months, the query statistics on flight tickets there decreases.
25 Flight tickets interest in spring Interest growth in resort areas (including the Middle East) The directions with the greatest interest increase in spring (query growth in comparison to winter months) 14000 12000 Resort areas 10000 Other countries 8000 6000 4000 2000 0 Italy Israel Spain Turkey Turkey Cyprus Croatia Greece Ukraine Georgia Bulgaria Armenia Abkhazia Germany Montenegro
In spring interest in main summer directions (European and Middle Eastern resorts) starts to grow.
26 Flight tickets interest in spring Interest decline in South-East Asia and winter resort countries
The directions with the greatest interest decline in spring (query loss in comparison to winter months) 0 India Cuba -200 Brazil Austria Mexico Vietnam Vietnam Thailand Australia Malaysia Maldives Mauritius SriLanka Cambodia Switzerland
-400 New Zealand TheEmirates
-600
-800
-1000 Asian resort areas
-1200 Winter resort areas Other countries -1400 The number of queries on flight tickets in the countries which are popular in autumn (after the end of the season in South-East Asia) and winter 27 resort countries reduces most of all. Flight tickets interest in summer Interest growth in resorts and CIS countries The directions with the greatest interest increase in summer (query growth in comparison to spring months) 3000 Resort areas
2500 CIS countries
2000
1500
1000
500
0 Cuba Spain Turkey Turkey Cyprus Tunisia Tunisia Croatia Greece Ukraine Georgia Armenia Tajikistan Tajikistan Abkhazia Kyrgyzstan Uzbekistan Montenegro In summer search statistics on flight tickets to resorts and CIS countries grows.
28 Flight tickets interest in summer
The directions with the greatest interest decline in summer (queries loss in comparison with spring months)
0 Italy USA USA Israel Egypt Japan France Poland
-500 Finland Canada Germany Switzerland Kazakhstan -1000 TheEmirates
-1500
-2000
-2500
-3000 In summer query statistics on the most destinations grows. Only in relation to 20% of countries impression statistics has reduced (compared to spring).
29 Seasonal interest growth structure
25000
20000
15000 Generic queries on the travel to the country 10000 Queries on air tickets to the country 5000
0
Interest growth in destination typically consists of 2 waves: - the main wave that precedes tourist season and general interest in the country by 1-2 months; - the second wave (usually less) coincides with a peak of interest in
30 tourism in the country. Seasonal interest growth structure Examples
India Finland
Generic queries on rest Air tickets Generic queries on rest Air tickets
45,000 1,200 100,000 4,000
40,000 90,000 3,500 1,000 80,000 35,000 3,000 70,000 30,000 800 60,000 2,500 25,000 600 50,000 2,000 20,000 40,000 1,500 15,000 400 30,000 1,000 10,000 20,000 200 5,000 10,000 500 0 0 0 0
31 Main directions causing seasonal growth
Automn Winter Spring Summer
India Montenegro Bulgaria Montenegro
Vietnam Bulgaria Montenegro Turkey
Egypt Spain Turkey Greece
Thailand Greece Spain Abkhazia
Singapore Italy Greece Uzbekistan
Austria Croatia Cyprus Tunisia
Germany Vietnam Italy Spain
Sri Lanka Malta Abkhazia Tajikistan
Uzbekistan Cyprus Israel Cuba
Philippines Ukraine Ukraine Cyprus
Cambodia Abkhazia Croatia Georgia
Mexico Japan Germany Ukraine
Malaysia Maldives Georgia Croatia
New Zealand Jamaica Armenia Armenia
CIS-countries European resort countries
South-East Asian countries
32 Domestic flights rate is growing
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00% Kiev Paris Sochi Rome Anapa Almaty Burgas Prague Istanbul Bishkek Tyumen Tyumen Yerevan Yerevan Moscow Tashkent Tashkent Barcelona Krasnodar Simferopol Gelendzhik Kaliningrad Chelyabinsk St. Petersburg St. Domestic tourism in Russia is gradually reaching the level of western countries. Up to 42% of queries are accounted for flights within the country. For reference, in the United States domestic flight tickets are looked for by 33 85% of internet users, and in Germany – 63%. Main domestic destinations
Query share by the largest cities (of total query statistics on flight tickets to Russian cities) St. Petersburg Moscow Sochi Tyumen Chelyabinsk Anapa Kaliningrad Krasnodar Gelendzhik Rostov-on-Don Novosibirsk Kazan Makhachkala Krasnoyarsk Ufa Murmansk Yekaterinburg Samara Astrakhan Mineralnye Vody Khabarovsk Perm Irkutsk Volgograd Resort areas Omsk Saratov Other countries Tula Arkhangelsk 34 0% 2% 4% 6% 8% 10% 12% 14% 16% Most popular city-pairs
By the share of queries on city-pairs (of total query statistics on flight tickets to Russian cities)
Moscow Osh Mineralnye Vody Moscow Russian cities Moscow Tashkent Anapa Moscow Chelyabinsk Moscow Other cities Moscow Chelyabinsk Moscow Petersburg Moscow Rostov Irkutsk Moscow Kaliningrad Moscow Moscow Khabarovsk Moscow Ufa Makhachkala Moscow Yekaterinburg Moscow Krasnoyarsk Moscow Moscow Simferopol Yerevan Moscow Moscow Novosibirsk Vladivostok Moscow Moscow Sochi Moscow Krasnodar 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40%
Most of users, who include city-pairs into their queries generally are looking for
35 domestic flights (or flights within CIS). Top destinations (by the number of conversions) (TOP-20, throughout the year)
The share of conversions
Moscow St. Petersburg Krasnodar Yekaterinburg Sochi Makhachkala Ufa Rostov Novosibirsk Yerevan Chelyabinsk Krasnoyarsk Perm Mineralnye Vody Samara Kaliningrad Tashkent Nalchik Arkhangelsk Riga
36 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Thank you!