research Jacyntha Twynam, Head: Wesgro Research The Changing Trends in Tourism ~ How we use the digital revolution in Research 10 March 2015
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1 research Jacyntha Twynam, Head: Wesgro Research The Changing Trends in Tourism ~ How we use the digital revolution in Research 10 March 2015
2 The extent of digital One connected world Total population: 7 billion Mobile phone users: 6.5 billion Internet users: 2.5 billion Social networks users: 1.75 billion During 2014 Chinese New year celebrations, 5 million people opened a bank account on WeChat and exchanged $45 million using their mobile phones. Half of travellers are booking via tablets or smartphones This year (2015), million people will actually book travel online, and a third of them will book via mobile. In Q3 2014, 150 million travellers downloaded the various TripAdvisor apps. Smart watch growth predicted to rise more than 500% to more than 112 million users in the next 4 years. emarketer forecasted that 26 million US consumers will book travel via a mobile device in million people are looking for travel information nearly half are doing so on mobile devices.
3 Digital activity There is strong growth in digital travel research and it is expected to account for 71,3% of travel research by At least 66% of leisure travellers (and 59% of business travellers) use search engines to research travel online. Mobile hotel bookings are surging but other travel transactions are lagging. Companies are investing in mobile apps and it can help streamline mobile sales but users prefer travel aggregator apps and branded airline apps. Personalisation of apps remains an important feature of travel apps.
4 The importance of tourism research The amount of data that is available on travel is enormous, almost too much to digest and consumers globally are not homogenous just because of they have a smartphone or tablet the research available only drives a small component of decision-making, i.e. the how part. Need to learn about the traveller as much as they need to learn about the destination. Tourism research provides us with information on tourist trends and their behaviours. The purpose of tourism research is to be able to gather data, analyse this data in order to provide accurate and relevant information upon which decision-making can be executed. Information must be relevant in order to have value or make an impact information which is too macro-level and aggregated has little value to those who are operating within the industry Therefore information provided through tourism research needs to be specific: Average length of stay in the Western Cape average length of stay by UK visitors in Ceres Holiday as main purpose of visit US visitors who come for holiday participate in.. US visitors travel in Q2 US visitors who travel in Q2 are aged and participate in Each participant within the tourism industry knows their business and can gauge their own performance. However, tourism research provides a lens through which they can assess their strategy in relation to the wider tourism industry.
5 Use of tourism research results in your business When tourism research is specific businesses should be able to identify opportunities and craft strategies in line with the trends considering their own business performance. It allows for the development of marketing strategies that consider content and not just means. The use of tourism research results allows for the development of product offering that is more suited to the specific rather than the general needs of the traveller. Using specific, relevant research can empower businesses to make long-term, sustainable decisions rather than react to market trends. The tourism industry is in a unique situation in that it is the best positioned industry for a sharing economy. The idea of the sharing economy is simple: Warren Buffet, We live in an abundant universe so why not offer some piece of what you have to someone who needs what you have at a mutually acceptable rate? With the help of technology to match supply and demand, companies like Airbnb, Uber, and Instacart are examples. Linking geographic regions, traveller experiences and requirements, or even identifying the lack thereof can lead to a sharing economy and considerable gains for each roleplayer requires specific research across the roleplayers that would enable the design of the strategy
6 Tourism research the problem statement Online research is complicated by multiple platforms social media, apps, online, mobile sites, etc. Travellers rely on social/video/photo sites and search engines for trip INSPIRATION this is the most researched aspect of digital i.e. the extent of digital and user behaviour in relation to devices There is countless data on preferred booking methods and devices used. There is limited data on that user s behaviour whilst travelling and on their experience - even less data on travellers in relation to a specific town or attraction According to a recent survey by TripAdvisor, 92% of UK travellers say that reviews are essential when booking a holiday they want to know about the experience At the end of the day we know little about travellers experiences in destination - except for levels of satisfaction and their digital activities The #1 problem is that as a destination we aren t able to access the right kind of research about travellers to and in relation to the destination The #2 problem is gathering the necessary information
7 Digital behaviour of travellers million people in the US, who represent 63% of the internet s population, will research travel online by end Of that percentage, 47.4% will research travel via mobile million people will actually book travel online, and a third of them will book via mobile. Leisure travellers are increasingly turning to search engines first vs brand sites/apps for online trip planning casting a wide net to gather information this is still only before they travel Source: Thinkwithgoogle, 2014
8 Digital behaviour of travellers at destination Source: Thinkwithgoogle, 2014
9 Digital behaviour of travellers in destination Digital behaviours of travellers in destination makes a clear case of data collection using mobile. There is also a strong requirement for information on activities in destination and not only the expectation of a destination website/app but that it would be a useful source of information. Inspiration, research, purchase/booking Search engines and hotel sites/apps Computer and tablet Experience Smartphone/tablet Sources of information on activities Walking around Website/app of destination Books/brochures in room/house Source: Thinkwithgoogle, 2014 Information on activities via smartphone Search engine
10 2015 Travel Digital Marketing Trend 3: Curation 4 out of 5 consumers want search ads to be customised to their immediate surroundings they want to connect with destinations on a profoundly local level airports, hotels, museums and galleries are using technology to detect smartphones and push offers, services and advertising to them. Consumers want independence they want to book their flight, their hotel, create their content and choose who to share it with, who influences them and who they want to influence, who to collaborate with and the brands and causes they believe in. Not only is the booking process for much of the travel industry taking place online, the crucial research and planning stages are also done online. This means that customers have a need for highly targeted information, such as destination guides and local information. The head of travel search engine Kayak has declared Facebook and Amazon "don't know what they are doing" in travel and Google as "fun" but "inaccurate." Speaking at ITB 2015 in Berlin, he said consumers are used to Google being fast and to it not being accurate curation would then not only serve the needs of travellers but would provide accurate information. Tourism industry players are well placed to produce content relevant to those needs they just need to be identified Curation also provides the opportunity for data collection through user stimulation and engagement.
11 Collection: Apps vs Mobile Online travel market research firm, Phocuswrite, declared that the idea of apps taking over the internet as an illusion..travel consumers show little interest in using mobile apps despite the surge in mobile travel research and that the reach of apps wasn t as high as expected. Two-thirds of app time was spent on , social media and gaming. The uptake on travel apps was light accounting for only 1%. There is not much incentive to download five to ten apps and keep them updated Phocuswrite Phocuswrite identified TripAdvisor as among the top travel brands engaged with on mobile and said: "13% used a TripAdvisor app but 18% visited via the mobile web. Only 38% of TripAdvisor mobile visitors were app only. The greatest app use for travel was of airline apps. Gasdia said: "People were using airline apps to check in or track their flight." TripAdvisor s CEO Steve Kaufer argues that there is no clear winner yet globally in apps versus mobile Web. The jury is still out in terms of mobile Web versus mobile app, Kaufer says. We see resounding votes for both. We have a lot of app usage and a lot of mobile Web usage. In conducting market research ease of collection and sample sizes is critical find the best fit Mobile websites Immediacy instantly available Compatibility across devices Instant upgradability/updated Findability SEO on mobile websites Shareability Greater reach across platforms Lifecycle apps have shelf-life of 30 days Designed to have databasedriven web applications Support and sustainability development costs Native Apps Interactivity/gaming Regular use/personalisation Complex calculations/reporting Native functionality camera access No connection
12 Digital data collection methods Sample size matters.consistency matters.methodology over times matters most Surveys will always provide the most depth it is just how we ask the questions all at once or little by little marriage of digital experience with data collection Austrian study (2014) digital footprints can be used for tourism research used Flickr to determine tourism demand photos tagged Austria differentiated between residents and tourists spatial analysis was conducted for tourism-generated data results indicated that geotagged photos in Austria are more representative of actual tourist numbers at the city level than at the regional level Location-based mobile analytics precise positioning is a problem that has not yet been solved Canadian study (2013) - introduces a multiple research method approach in capturing immediate real time experiential, visual, and spatial data on tourist experiences. Immediate experiential data is captured using the Experience Sampling Method (ESM) modified for hand-held smartphones. Immediate visual data involves the collection of digital photographs taken by the tourist at the destination. Immediate spatial data is collected using Global Positioning System (GPS) technology which captures routes taken by the tourist. Post trip interviews and surveys are also used to provide the ability to compare immediate experiences with recollected experiences. Recommendation - recollection research methods alone cannot be used to fully understand the tourist experience but does allow for a rich, comprehensive data set to achieve a greater understanding during and after a trip. GPS tracking legal issues but effective
13 Digital data collection case study and potential digital research Tourism Australia Wi-Fi Hotspot Project 2013 strategic wifi location project - free wifi at high profile locations - centralised landing page structure - personalised to location for localised marketing from the current fluid platform - leverage off the fluid platform for data collection for visitor movements - promotion of deals and offers - tools an content to enhance the experience of the visitor - survey data collected progressively, e.g. three questions per day in return for data usage Potential digital research in the Western Cape: Scope for strategic wifi location project viable option in outlying areas Engagement of traveller in destination Real time collection of data Movements of traveller engagement with destination products Fluid platform for regional integration for the entire province
14 Digital Research the legal side of things Regulation of Interception of Communications and Provision of Communication-related Information Act, location of user within telecommunication system Big Brother Protection of Personal Information Act, 2013 S14 of the Constitution provides for the right to privacy and protection against unlawful collection, retention, dissemination and use of personal information. Act provides framework of the information society requiring the removal of unnecessary impediments to the free flow of information, incl. personal information. Harmonisation with international standards and regulations for the processing of information by both public and private bodies in a manner that gives effect to the right of privacy. Applies to processing of personal information using automated or non-automated means Personal information information relating to an identifiable, living, natural or juristic person including information relating to a) gender national origin age c) any identifiable address location information, online identifier or other particular assignment to that person. e) personal opinions, views or preferences of that person Act does not apply where processing of personal information leads to de-identification to the extent that it cannot be re-identified again.
15 Digital Research the legal side of things Conditions for lawful processing of personal information Condition 1 - Accountability meet requirements of conditions for lawful processing Condition 2 Processing limitation must be processed lawfully and in a reasonable manner that does not infringe privacy - consent is given for prosessing - personal information must be collected directly from the data subject or another source where there would not be prejudice of the rights of the data subject Condition 3 Purpose specification - personal information must be collected for a specific, explicitly defined and lawful purpose relating to a function or activity of the responsible party - steps must be taken to ensure that the date subject is aware of this purpose - retention of records must not be for longer than necessary for achieving the purpose but may be kept for longer for statistical purpose provided that safeguards have been established against use for other purposes Condition 4 Further processing - must be in accordance or compatible with purpose of collection - further processing can be consented to
16 Digital Research the legal side of things Condition 5 Information quality must take practicable steps to ensure completeness, accuracy Condition 6 - Openness - notification to data subject when collecting personal information - information being collected -name and address of responsible party - purpose of collection, - recipient or category or recipients of the information - notification must occur prior to the collection - notification not required where information will not be used in a form where the data subject will not be identified or used for statistical or research purposes Condition 7 Security safeguards - must secure the integrity and confidentiality of personal information by taking measures to prevent loss, damage, unlawful access - all operators collecting information must also implement the security safeguards Condition 8 data subject participation - data subject s access to their personal information
17 Wesgro Tourism Research Wesgro is responsible for providing the official tourism statistics for the Western Cape and conduct primary research on tourism trends in the Western Cape. Development of a new visitor tracking survey (phased approach) - strategy driven data analysis and report writing based on a demand assessment. The gathering and collection of the data is a dependent process which is mutually beneficial Wesgro relies on members of the tourism industry assist with data gathering in turn Wesgro will keep data confidential (where required) and provide accurate reporting better understanding and business decision-making that is sound Still paper based with an eye on digital Reports developed using visitor tracking surveys: Western Cape Tourism Trends reports Regional Tourism Trends reports (one for each region of the Western Cape) International regions, i.e. Africa, Americas, Asia, Europe Niche reports
18 Primary Research - Regional Visitor Tracking Surveys Wesgro is the centralised point for the collection and analysis of all surveys across all towns in the Western Cape allows for data interpretation and methodology to be consistent for comparative analysis Primary research is the only way in which we can determine trends in the regions of the Western Cape and their corresponding towns. Sample sizes need to be large enough for statistical significance Require context for the analysis to make reports rich and avoid misinterpretation 3-year roll-out of surveys Year 1 visitor information centres (VICs) Year 2 attractions Year 3 accommodation establishments Universal application of surveys allows for surveys to be applied at all locations, events and establishments Regional visitor tracking surveys for 2014: Q1-8,959 Q2-4,426 Q3-6,196 Q4 YTD 4,219 (expected ±7,000) YTD total for ,800 expected to exceed 26,600
19 OVERVIEW OF WESTERN CAPE Q Q Q % Share of overseas visitors 28.5% 34.1% 52.0% % Share of domestic visitors 70.6% 64.5% 46.8% % Share of overnight visitors 49.5% 45.7% 54.5% % Share of day visitors 50.5% 54.3% 45.5% Top three international markets Top three domestic markets Main purpose of visit Most common travel group size Most common length of stay per town Most common mode of transport Top information sources Germany (20.6%) Germany (24.0%) United Kingdom (27.3%) United Kingdom (20.5%) United Kingdom (20.4%) Germany (26.9%) Netherlands (10.6%) Netherlands (7.5%) Netherlands (8.9%) Western Cape (70.8%) - Western Cape (69.4%) Gauteng (12.9%) - Gauteng (16.0%) Eastern Cape (4.2%) - KwaZulu-Natal (3.7%) Holiday (90.9%) Leisure/holiday (83.9%) Leisure/holiday (95.9%) Business (4.6%) Business (8.8%) Business (2.7%) Education (2.4%) Honeymoon/Weddings (2.4%) Visiting friends & relatives (0.7%) Pairs (49.3%) Pairs (50.1%) Pairs (56.7%) Alone (22.2%) Alone (16.2%) Alone (19.2%) 1 night (38.1%) 1 night (43.9%) 1 night (41.3%) 2 nights (27.5%) 2 nights (31.4%) 2 nights (25.1%) 3 nights (10.8%) 3 nights (8.1%) 7 & more nights (12.1%) Own motor vehicles (61.4%) Own motor vehicles (66.2%) Rented car (66.8%) Rented car (26.6%) Rented car (33.8%) Own motor vehicle (20.8%) Word of mouth (30.7%) Word of mouth (46.1%) Word of mouth (30.5%) Internet/websites (24.2%) Internet/websites (16.9%) Internet/websites (26.9%) Average daily spend R501-R1000 (40.0%) - R501-R1000 (42.1%) Average daily spend on accommodation Top three activities undertaken in the Western Cape R501-R1000 (38.7%) - R501-R1000 (42.1%) Overseas Domestic Overseas Domestic Overseas Domestic Culture/heritage (20.0%) Scenic drives (22.3%) Scenic Drives (20.0%) Scenic Drives (44.8%) Nature activities (16.7%) Flowers (16.9%) Culture & Heritage (17.0%) Culture & Heritage (11.5%) Gourmet restaurants (15.4%) Culture/heritage (14.2%) Gourmet restaurants/cuisine (13.0%) Gourmet restaurants/cuisine (10.0%) Gourmet restaurants (15.0%) Culture/heritage (14.5%) Nature activities (14.5%) Scenic drives (19.4%) Gourmet restaurants (16.0%) Culture/heritage (15.1%)
20 OVERVIEW OF REGIONAL VISITOR TRENDS AND PATTERNS, Q TOURISM INDICATOR Cape Town Cape Winelands Cape West Coast Cape Overberg Cape Garden Route & Klein Karoo Cape Karoo % Share overseas 33.0% 35.7% 15.3% 30.2% 23.5% 5.9% % Share domestic 67.0% 63.6% 83.9% 69.3% 75.9% 94.1% Germany (19.4%) United Kingdom, Germany (19.0% each) Germany (27.9%) United Kingdom (34.9%) Germany (19.8%) Top international markets United Kingdom (13.9%) Netherlands (11.1%) United Kingdom (23.9%) Germany (18.9%) United Kingdom (17.1%) - Top domestic markets Main purpose of visit Most common travel group size Most common length of stay per town Most common mode of transport Top information sources France, Italy, Australia (9.3% each) France (9.2%) Netherlands (11.8%) Netherlands, Australia (7.5% each) Netherlands (15.6%) Gauteng (43.1%) Western Cape (83.8%) Western Cape (56.8%) Western Cape (80.9%) Western Cape (84.7%) Western Cape (51.5%) Western Cape (37.5%) Gauteng (7.9%) Gauteng (17.9%) Gauteng (7.0%) Gauteng (7.3%) Gauteng (22.0%) Eastern Cape (11.1%) Eastern Cape (3.0%) KZN (5.7%) Eastern Cape (5.3%) Eastern Cape (3.6%) Free State (6.5%) Holiday/leisure (80.4%) Holiday/leisure (97.4%) Holiday/leisure (93.1%) Holiday/leisure (83.2%) Holiday/leisure (85.9%) Holiday/leisure (95.9%) Business (14.5%) Business (7.2%) Education (7.0%) Education (1.4%) Business (5.0%) VFR (2.5%) Education (3.7%) Business (5.2%) Pairs (51.8%) Pairs (48.0%) Pairs (56.6%) Pairs (47.2%) Pairs (40.2%) Pairs (40.2%) Alone (25.2%) Alone (24.5%) Alone (14.8%) 5 & more (15.3%) Alone (37.7%) 5 & more (20.5%) 7 & more (29.2%) 1 night (39.0%) 1 night (47.0%) 1 night (36.8%) 1 night (44.2%) 1 night (64.2%) 5-6 nights (22.3%) 2 nights (36.7%) 2 nights (29.0%) 2 nights (36.8%) 2 nights (25.5%) 2 nights (17.9%) Tour bus (34.7%) Own motor vehicle (50.8%) Own motor vehicle (82.2%) Own motor vehicle (65.0%) Rented car (21.2%) Rented car (40.9%) Rented car (14.9%) Rented car (31.5%) Word of mouth (36.6%) Internet/websites (42.0%) Word of mouth (30.5%) Internet/websites (28.6%) Internet/websites (28.4%) VICs (27.3%) VICs (30.1%) Brochures (18.2%) Average daily spend R501-R1000 (52.9%) R501-R1000 (32.4%) R201-R500 (39.4%) Type of accommodation Average daily spend on accommodation R201-R500, R501- R1000 (37.6% each) Rented car (50.5%) Own motor vehicle (45.5%) Word of mouth (58.8%) Internet/websites (16.0%) - Own motor vehicle (61.5%) Rented car (29.6%) Word of mouth (83.5%) R501-R1000 (44.0%) - Hotel (29.1%) Self-catering (37.7%) Self-catering (44.1%) B&B (37.9%) Self-catering (30.2%) Self-catering (27.8%) Guesthouse (21.8%) Guesthouse (15.0%) Self-catering (35.5%) B&B (26.4%) - R501-R1000 (35.3%) R501-R1000 (41.5%) R201-R500 (32.5%) R501-R1000 (44.0%) - Nature activities (26.7%) Wine tasting (29.5%) Flowers (28.5%) Scenic drives (29.6%) Scenic drives (26.2%) - Top three activities undertaken Culture/heritage (25.4%) Scenic drives (20.4%) Scenic drives (23.2%) Culture/heritage (16.3%) Culture/heritage (15.2%) Gourmet restaurants (17.3%) Gourmet restaurants (15.8%) Culture/heritage (11.5%) Gourmet restaurants (14.7%) Wine tasting (10.0%) Culture/heritage (96.9%)
21 OVERVIEW OF TRENDS AND PATTERNS BY TOP INTERNATIONAL SOURCE MARKETS VISITING CAPE OVERBERG, JAN-SEP 2014 TOURISM INDICATOR United Kingdom Germany Netherlands Australia United States Main purpose of visit Most common travel group size Most common length of stay Most common mode of transport Top information sources Most common type of accommodation Holiday/leisure (97.0%) Holiday/leisure (97.5%) Holiday/leisure (95.4%) Holiday/leisure (98.9%) Holiday/leisure (98.2%) Education (1.3%) Business (0.8%) VFR (3.1%) Business (1.1%) Pairs (56.9%) Pairs (65.0%) Pairs (67.5%) Pairs (59.1%) Pairs (60.9%) 5 & more (16.3%) Fours, 5 & more (9.0% each) Fours (14.2%) Fours (16.7%) Fours, 5 & more (12.6% each) 1 night (39.9%) 1 night (47.2%) 1 night (51.4%) 1 night (55.9%) 1 night (45.5%) 2 nights (38.3%) 2 nights (39.6%) 2 nights (35.5%) 2 nights (23.5%) 2 nights (42.4%) Rented car (88.1%) Rented car (88.1%) Rented car (94.3%) Rented car (85.0%) Rented car (85.1%) Tour bus (4.8%) Tour bus (6.5%) - Own motor vehicle (5.0%) Own motor vehicle (8.1%) Internet/websites (39.1%) Internet/websites (41.2%) Internet/websites (35.2%) Internet/websites (32.7%) Word of mouth (23.8%) Word of mouth (15.8%) Word of mouth (16.1%) Travel agent/tour operator (13.9%) VICs (17.3%) Internet/websites (20.6%) B&B (37.9%) B&B (42.6%) B&B (30.9%) B&B (35.7%) B&B (42.3%) Guesthouse (28.7%) Guesthouse (24.6%) Guesthouse (28.4%) Self-catering (25.0%) Guesthouse (15.4%) Average spend on R201-R500, R501-R1000, R501-R1000 (41.8%) R201-R500 (42.7%) accommodation (28.6% each) R501-R1000 (39.1%) R501-R1000 (40.0%) Average daily spend R501-R1000 (46.3%) R201-R500 (44.1%) R501-R1000 (51.9%) R201-R500 (40.0%) R501-R1000 (40.4%) Scenic drives (26.5%) Gourmet restaurants (25.2%) Gourmet restaurants (23.6%) Scenic drives (34.5%) Scenic drives (26.1%) Top three activities undertaken Gourmet restaurants Gourmet restaurants (21.4%) Gourmet restaurants (19.1%) Scenic drives (23.1%) Scenic drives (21.8%) (22.7%) Culture/heritage (16.8%) Culture/heritage (18.7%) Culture/heritage (20.4%) Culture/heritage (10.7%) Culture/heritage (17.8%)
22 OVERVIEW OF VISITOR TRENDS AND PATTERNS BY TOWN, JAN-SEP 2014 TOURISM INDICATOR Darling % Share overseas 25.6% % Share domestic 72.6% United Kingdom (34.9%) Top international markets Germany (13.2%) Netherlands (8.9%) Western Cape (51.0%) Top domestic markets Gauteng (22.9%) KwaZulu-Natal (9.5%) Main purpose of visit Holiday/Leisure (93.6%) VFR (2.5%) Most common travel group size Pairs (62.4%) Fours (13.9%) Most common length of stay 1 night (52.6%) 2 nights (22.6%) Most common mode of transport Own motor vehicle (66.8%) Rented car (31.1%) Top information sources Word of mouth (52.2%) Internet/websites (12.9%) Average daily spend R201-R500 (35.0%) Type of accommodation Guesthouse (29.7%) Self Catering (23.2%) Average spend on accommodation R501-R1000 (41.6%) Scenic drives (33.1%) Top three activities undertaken Culture/heritage (13.2%) Wine tasting (12.6%)
23 KEY TRENDS AND PATTERNS BY VISITOR TYPE, Q Visitor Profile Holiday/Leisure Traveller Business Traveller % share of overseas visitors 30.2% 9.9% % share of domestic visitors 69.0% 86.8% Most common travel group size Pairs (50.8%) Alone (49.5%) 1 night (38.3%) 1 night (47.9%) Most common length of stay per town 2 nights (28.5%) 2 nights (14.9%) 3 nights (10.5%) 3 nights, 7 & more (10.8% each) Most common mode of transport Own motor vehicle (60.4%) Own motor vehicle (72.4%) Top information sources Word of mouth (30.6%) Word of mouth (27.4%) Most common type of accommodation Self catering (39.2%) Self-catering (38.8%) Average spend on accommodation R501-R1000 (39.1%) - Average daily budget R501-R1000 (40.0%) R501-R1000 (44.9%) Scenic drives (19.6%) Meetings/incentives (26.8%) Top three activities Culture/heritage (16.7%) Culture/heritage (15.1%) Gourmet restaurants (12.7%) Expos/exhibitions (14.0%)
24 Thank you Dankie Enkosi
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