#bto2011 - phocuswright research

Global, European and Italian Travel Trends

December 1, 2011

Florence Kaci Director, Sales EMEA and European Market

Specialist

Global Landscape

Italy Online Travel Overview

European Distribu=on Trends

Mobile Hits the Mainstream

Travel Distribu=on and Social Media

Agenda

© 2011 PhoCusWright Inc. All Rights Reserved.

3 © 2011 PhoCusWright Inc. All Rights Reserved.

3

PhoCusWright Analysts Around the World


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Does Your Distribu7on Strategy S7ll Look Like This?

Global Landscape


6

Lower

Highe

r

Online Travel Pen

etra7o

n

Lower Higher Annual Growth Online Sales

U.S.

U.S. SCAN

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM

Source: PhoCusWright’s Global Online Travel Overview Second EdiFon


7

Lower

Highe

r

Online Travel Pen

etra7o

n

Lower Higher

SCAN U.S.

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM

Annual Growth Online Sales Source: PhoCusWright’s Global Online Travel Overview Second EdiFon


8

Lower

Highe

r

Online Travel Pen

etra7o

n

Lower Higher

SCAN U.S.

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM



9

Lower

Highe

r

Online Travel Pen

etra7o

n

Lower Higher

FRANCE

GERMANY

ANZ

ITALY

CHINA

SCAN U.S.

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM



10

U.S., Europe, Asia Pacific, and La7n America Online Leisure/Unmanaged Business Travel Share of Total Travel

Note: 2011-‐2013 projected. Source: PhoCusWright’s European Online Travel Overview Seventh Edi7on

27% 31%

35% 38% 39% 40%

27% 31%

33% 35% 36%

41%

15% 18%

21% 23% 24%

9% 11% 14%

18% 21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2008 2009 2010 2011 2012 2013

U.S.

Europe

Asia Pacific

La7n America

European Distribu7on Trends


12


13

Top Five Pan-‐European Online Travel Agencies, Share Among These Agencies, 2010 and 2011

Note: 2011 projected. Source: PhoCusWright’s European Online Travel Overview Seventh Edi7on

30%

10%

10%

40%

9%

2010

Expedia Europe

Opodo

Travelocity Europe

Priceline Europe

Orbitz WW Europe

28%

9%

8%

47%

8%

2011



14

Consolida7on


15


16


17


18


19


20


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Deregula7on of the Rail Sector •  Rail has been one of the strongest travel sectors •  Harmoniza7on of booking systems to accelerate growth •  OTAs shaping up to distribute rail content •  Mobile bookings to increase rapidly •  Rail travel to rise as more compe7tors enter na7onal markets •  Flights under five hours to face compe77on from rail


22

Long Tail Distribu7on of Travel Accommoda7ons •  Highly fragmented European hospitality sector spells boom 7me for OTAs •  Vaca7on rentals will be a sector to watch – HomeAway, Airbnb, Wimdu •  Even the GDSs are figh7ng for a share of the pie •  Travel reviews on OTA sites are key to driving and retaining traffic

Italy Online Travel Overview


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25

Italy Follows the Trend


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Italian Online Travel Market, OTA vs. Supplier Direct, 2010

Source: PhoCusWright’s Italian Online Travel Overview Seventh EdiFon

OTA 47%

Supplier Direct 53%


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Italian Online Travel Supplier Direct Share (%), 2010 and 2013

Note: 2013 projected. Totals may not add to 100% due to rounding. Source: PhoCusWright’s Italian Online Travel Overview Seventh Edi7on

27%

21%

24%

23%

2% 3%

2010

TraditionalAirlineLCC Direct

Hotel Direct

Rail

Car Rental

Tour Operator

30%

17%

26%

21%

2%4%

2013

Mobile Hits the Mainstream


29


30

Other

None of the above

Web-‐enabled television

Tablet PC/Netbook

E-‐readers (e.g., Kindle)

Web-‐enabled portable music/video players

Web-‐enabled video game console

Web-‐enabled mobile telephone

Desktop computer

Laptop computer

% 10% 20% 30% 40% 50% 60% 70% 80%

2010 2011 Ownership of Web-‐Enabled Devices

Ques7on: Which of the following Web-‐enabled devices do you own/use? Select all that apply. Base: U.S. online travelers (2010 N= 792)(2011 N=1,948) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWright’s Traveler Technology Survey 2011


31

Con7nuous Engagement and Merchandising

The Smartphone Facilitates Con7nuous Engagement

Source: PhoCusWright Inc.

•  The mobile plamorm represents the most personalized environment ever created • Ability to customize offers to parFcular segments and customers

Dream

Book Explore

Share Plan

•  Ancillary services of all types are well suited for the mobile plamorm •  Combines cross selling effort with personalizaFon and locaFon


32


33

Travel Distribu7on and Social Media


35

Over 800 million active users!


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Influence of Social Media Channels on Purchasing Decisions

Ques7on: How influen7al have each of the following features been to you when making travel purchasing decisions in the past 12 months? Select one for each op7on. Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding Source: PhoCusWright's Traveler Technology Survey 2011

45%

42%

44%

34%

34%

31%

29%

36%

40%

52%

53%

61%

Traveler reviews on online travel agency websites, such as Expedia Traveler review websites, such as

TripAdvisor

Online reviews from travel professionals

Comments from people in my online social network, such as Facebook or Twioer

Travel blogs or online travel forums

Company informa7on/promo7ons on an online social network, such as Facebook or

Very influen7al Somewhat influen7al Not at all influen7al


38

Immediate Referral Conversion Volume to Hotel Websites, 1H-‐2H 2008-‐2010

Source: PhoCusWright’s Social Media in Travel, 2011 and Compete Inc.

-‐

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Traveler Review Sites Facebook

1H08 2H08 1H09

2H09 1H10 2H10


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Pos7ng today, booking tomorrow?



40

On Social Network Site

E-‐Commerce

Video and Photos

E-‐Commerce

Community

Corporate Communica=ons

Vehicle

Social Buying

Purchase PhoCusWright’s European Online Travel Overview or Italian Online Travel Overview by February 1, 2012 and

receive 30% off!

Go to www.phocuswright.com/products and use offer code “bto-‐2011”.

Thank you!

Florence Kaci [email protected]

#bto2011 - phocuswright research

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