Engaging the Connected Traveler

Transcription

1 Engaging the Connected Traveler An Experian Marketing Services white paper

2 Foreword The Connected Traveler takes more trips and spends more on travel than the average American, making it a hugely important segment for any marketer trying to get a piece of the $2 trillion U.S. travel industry. With 84% of travel companies considered small businesses according to the U.S. Travel Association, cutting through the clutter and engaging this consumer segment on a personal level is more important than ever. The Connected Traveler represents a critical segment of the traveling public that is more connected, technologically savvy, and active than ever before, expecting brands to seamlessly engage with them across all channels, especially mobile. In this report, we ll provide actionable insights into the Connected Traveler s attitudes and behaviors and ideas for marketers about how to best engage with them. Key Findings: Focus on the whole family More than 60% of Connected Travelers are married and nearly half have children in their household Tactile experience Connected Travelers are 72% more likely to use a tablet than the average adult Offline readers They are 49% more likely to read traditional travel magazines than the average adult, and 120% more likely to read in-flight magazines Badge of Honor Connected Travelers like to brag to their friends about new locales and adventures they feel they discovered in their travels Double the loyalty 40% belong to frequent flyer programs, and over half of those are members of two or more loyalty programs Worth the investment Over 30% of domestic Connected Travelers spent more than $1000 during their last trip For even more insights on the Connected Traveler, contact your Experian Marketing Services account manager or consumerinsight@experian.com 1 Engaging the Connected Traveler

3 Defining the Connected Traveler For the purpose of this study, Experian Marketing Services identified a segment of U.S. consumers we call the Connected Traveler. These are consumers that are seasoned travelers; they have taken three or more domestic trips in the past year, or have traveled internationally in the last three years. Additionally, they are highly digitally engaged. Not only do they own a smartphone, but they use it for more than two hours in a typical day. Demographics The segment is slightly more female (52%) than male (48%). It also skews younger than average; the bulk of these consumers are under the age of 45. Not surprisingly, the Connected Traveler is also more affluent than the average adult, with almost 50% of the segment having an annual household income of more than $100,000. They are also highly educated. Almost 25% of the segment has a college degree, compared with 15% of the general adult population. An additional 16% have a graduate degree, compared to the average of 10%. Seventy-two percent are employed. Sixty-two percent of these travelers are married and nearly half have children in the household. These travelers are often looking to go on trips with their whole family, opting for child-friendly activities and travel arrangements. Less than $25,000 $25,000 $49,999 $50,000 $59,999 $60,000 $74,999 $75,000 $99,999 $100,000 $149,999 $150,000 $249,999 $250,000 $499,999 $500,000 or More Household Income 0% 5% 10% 15% 20% 25% Connected Traveler All Adults Marketing Tip: Focus on the whole family. Appeal to Connected Travelers by offering activities and deals for young adults as well as affluent families with children. Engaging the Connected Traveler 2

4 Lifestyles As exemplified by their demographic makeup, Connected Travelers tend to be affluent and seasoned travelers, making them a lucrative segment for marketers to target. That being said, the consumer group spans a wide range of ages, family circumstances, and geographical locations. It is helpful, then, to divide the group into further segments based upon their behaviors and attitudes. Using Experian s Mosaic USA Consumer Lifestyle Segmentation solution, we identified the segments that align closely with members of the Connected Traveler group. Mosaic Groups of the Connected Traveler Power Elite Flourishing Families Booming With Confidence Suburban Style Thriving Boomers Promising Families Young, City Solos Middle-Class Melting Pot Family Union Autumn Years Significant Singles Blue Sky Boomers Families In Motion Pastoral Pride Singles And Starters Cultural Connections Golden Year Guardians Aspriational Fusion Struggling Societies 0% 2% 4% 6% 8% 10% 12% Connected Traveler All Adults The 19 segments are organized in order of affluence, with Power Elite being the wealthiest and Struggling Societies the least wealthy. As shown in the chart above, Connected Travelers are far more likely to be members of the most affluent segments, such as Power Elite and Flourishing Families, than the average American. Additionally, they are more likely to be members of Significant Singles and Singles and Starters, a trend that highlights the groups relatively young age and its propensity towards technology. Connected Travelers in these segments are likely young, tech savvy individuals who are looking for affordable, adventurous travel. Digging deeper into the characteristics of these distinct segments, we know that members of the Flourishing Families segment are financially secure, established and family-oriented. We also know that they are health-conscious and eco-friendly, looking to maintain their active, healthy lifestyles even on vacation. 3 Engaging the Connected Traveler

5 Connectivity As mentioned before, Connected Travelers own smartphones, specifically iphones and BlackBerrys and use it for two or more hours each day. These are tech savvy, young and wealthy consumers, oftentimes businesspeople who rely on their phone for and keeping up with work contacts. Additionally, the majority of these travelers own phone plans with AT&T and Verizon. These consumers are early tech adopters; the fact that 35% use AT&T supports this argument, as AT&T was the first network to carry iphones for a number of years. Connected Travelers are 66% more likely to say, I need to be connected to the Internet from the moment I wake up until I go to bed We also found that these consumers have strong views about the usefulness of mobile devices and have a desire to be connected all of the time. They are: 77% more likely than the average adult to believe it is important to have Internet while on the go 82% more likely to carry more than one mobile device at a time 98% more likely to use their mobile device to search for local deals This indicates that customers will be on their mobile devices to find deals and things to do while they are on vacation. Marketers can leverage this understanding to develop more effective and relevant mobile content while their customers are traveling, such as local business offerings or free city guides. Marketing Tip: Develop mobile content and deals for travelers to discover while they are on their vacations, such as local business offerings or free city guides. Engaging the Connected Traveler 4

6 Where to reach the Connected Traveler Connected Travelers expect a seamless experience across all their devices The Connected Traveler is, by definition, connected, and their connection to the digital world goes far beyond their mobile devices. They are more likely than the average American to have used a home PC, a work PC, and a tablet in the past 30 days. In fact, Connected Travelers are 72% more likely to use a tablet than the average, over-indexing in that category more than any other. The focus on tablets and smartphones means that when these consumers are interacting with brands, whether on apps or on a website, they expect an experience optimized for their touch devices. 200 Platform Reach by Index: Last 30 Days E-reader Game Magazines Mobile Newspapers PC at Home PC at Work Radio Tablet Television Console Phone Connected Traveler index compared to all adults On their mobile devices, Connected Travelers often visit travel content websites such as TripAdvisor and TravelZoo. Content is the top category for website visits, followed by Airlines and Hotels/Hostels. This suggests that much of the travel-based mobile browsing is focused around general advice and tips for travelers, likely as travelers are planning or even on their vacation. General Content Airlines Hotels/Hostels Theme Parks City Tourism Rental Cars State Tourism Casinos Cruises Airports Country Tourism Mobile Browser Visits: Travel website subcategories Source: Experian Marketing Services Hitwise 0% 5% 10% 15% 20% 25% 30% 5 Engaging the Connected Traveler

7 Offline media consumption Though Connected Travelers tend to rely on the Internet for media and entertainment, they are also likely to consume offline media, like magazines and television. Connected Travelers are 49% more likely than the average adult to read traditional travel magazines and 120% more likely to read in-flight magazines. Travelers are required to shut off their smartphones and other devices during takeoff and landing, which may increase their desire to consume traditional print content, especially when it is conveniently located in their seat pocket. Television preferences among these consumers have a high emphasis on lifestyle programming. Their varied television interests highlight the dynamic nature of the group and their behaviors/attitudes beyond traveling. Top magazines among Connected Travelers, ranked by index Top cable channels viewed by Connected Travelers, ranked by index Magazine Index Cable Channels Index American Way (American Airlines) 246 Hemispheres (United Airlines) 245 Spirit (Southwest Airlines) 227 Sky (Delta Airlines) 217 Us Airways 213 Inc. 203 PC Magazine 202 Seventeen 201 Shape 189 Fitness 188 Bravo 130 E! (Entertainment TV) 129 HGTV (Home & Garden Television) 127 Showtime 126 ESPN News 124 ESPN 121 TBS 121 HBO 120 Comedy Central 118 DIY (do-it-yourself) 118 Engaging the Connected Traveler 6

8 Planning the Trip Travel attitudes Connected Travelers are highly research-inclined, and a lot of thought goes into planning their trips. We took a look at their attitudes and reasons for traveling, their search behavior and the decisions they make to determine how they are using the Internet to plan. While some of these consumers travel for business, the majority travel for personal reasons. In fact, over 60% of domestic trips were for vacation, with an additional 28% for personal reasons other than vacation. They love the idea of foreign travel, try to vary their destinations, and want to go places that differ from where their friends go. They like to use travel as a differentiating factor among their friends and colleagues, almost using their trips as badges of honor that they are eager to share when they return. Their eagerness to find unique trips and their propensity to share their experience with friends and family mean that they are likely to be evangelists for brands they discover. They are not extremely loyal they are more likely to be willing to make arrangements through a new company but their desire to be the discoverer means that there is a great opportunity to capture the market with new offerings, especially if the offerings warrant a sense of exclusivity. Love the idea of foreign travel Vacation is for relaxation only Try to vary destinations Prefer domestic travel Prefer two/three short vacations to one long vacation Like vacations where activities are organized for me Take vacation experiences that differ from friends Attitudes about travel Percentage agreement with statements Willing to make arrangements through new company 0% 10% 20% 30% 40% 50% 60% Connected Traveler All Adults Connected Travelers are also heavy researchers 58% were more likely to say that the Internet helps them become an expert in many areas and use the Internet to look for reviews, travel tips, things to do in the area, and ultimately to book their travel. In fact, they are 57% more likely to say that the Internet helps them in booking travel plans. Marketing Tip: Offer Connected Travelers exclusive deals to emerging destinations and activities to meet their drive to be first. 7 Engaging the Connected Traveler

9 Loyalty Programs Connected Travelers do have a high propensity to be part of airline and hotel rewards and loyalty clubs. Forty percent of all Connected Travelers (versus 27% of all domestic travelers) belong to frequent flyer programs. United Frequent Flyer Program: Enrollment Delta American Southwest US Airways JetBlue 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Connected Traveler All Adults Even more significant, over half of those enrolled belong to two or more programs. This indicates that these consumers are interested in receiving benefits, yet are reluctant to be tied to a single airline provider, especially when other airlines carry competitive price and geographical offers. Once these travelers reach their destinations, they usually stay in hotels or with friends and family. A smaller percentage stays at campgrounds and all-inclusive resorts. The most visited domestic hotels by this segment are the Marriott and Hilton, both of which have about 13% market share among this group. However, when compared with the average American, the Connected Traveler is much more likely to stay at luxury hotel brands. In fact, they are over three times more likely to stay at the Ritz Carlton, Intercontinental, or the W hotels than average. Marketing Tip: Loyalty Member status is not enough. Be aware that this segment is a part of multiple loyalty programs, and offer strong benefits, like fine dining or free in-flight Wi-Fi, to these consumers to win their business. Engaging the Connected Traveler 8

10 Where are they going and how do they get there? The top indexing states for domestic travel among Connected Travelers are Florida, California, Texas, and New York. As is expected for domestic travelers, they are highly likely to travel by car, and are much more likely than the average American to fly domestically. They are also more likely to take a boat or a train, a finding that supports the assertion that these travelers are looking for unique experiences. Airline preferences vary among the segment, but the bulk of trips are flown on the top three U.S. carriers: American, Delta, and United. For domestic travel, the connected traveler has a stronger propensity to use Alaska Airlines and AirTran Airways, along with American and United, than the average domestic traveler. Airlines used for domestic travel by Connected Travelers, ranked by index Airline: Domestic Travel Index* Alaska Airlines 167 Airtran Airways 162 American Airlines 152 United 149 Jet Blue 147 The top locations for foreign travel are Mexico, Europe, Canada, and Central/South America, which suggests that these travelers are more comfortable staying close to the United States when they do leave the country. Again, they are more likely to take a plane, car, boat and train than the average traveler, with planes outperforming all other modes of transportation. Connected Travelers flying to foreign destinations are more likely to use Air Canada, Alitalia, Virgin Atlantic and Air France. They are also 27% more likely to fly American Airlines than other international travelers. Airlines used for foreign travel by Connected Travelers, ranked by index Airline: Foreign Travel Index* Air Canada 162 Alitalia 148 Virgin Atlantic 137 Air France 131 American Airlines 127 *Domestic airline index is to against domestic travelers; Foreign airline index is against foreign travelers 9 Engaging the Connected Traveler

11 What information are they seeking out online? A lot of insight can be gained by examining the search terms used by Connected Travelers when they are researching for their upcoming vacations. Not only does the information provide insight into a consumer s desired content, but it also can help marketers understand how to better optimize their own websites for common search queries. Because Florida was the top domestic destination among Connected Travelers, we analyzed Florida-related search terms to see which terms drove the highest amount of traffic to travel-related websites. Among the top results were terms like disney world and universal studios orlando that led the consumer right to the theme park websites. Beyond theme park-related searches, consumers wanted advice about other things to do and were led to websites like TripAdvisor, Orlando Travel and Visitors Bureau. Additionally, we found that YouTube was the 12th most popular website visited after searching for Florida travel items; marketers should consider incorporating video guides and promotions in their marketing programs. Websites receiving traffic from terms in Florida Travel 12 Rolling Weeks ending June 22, 2013 Websites Search Clicks Paid: Organic Rate 1 Walt Disney World 17.49% 20.66% 79.34% 2 Universal Studios Orlando Resort 5.07% 19.24% 80.76% 3 TripAdvisor 4.26% 16.26% 83.74% 4 Google Maps 3.25% 0.00% % 5 Expedia 2.41% 69.67% 30.33% 6 SeaWorld Parks & Entertainment 2.23% 30.63% 69.37% 7 Vacation Rentals by Owner 1.95% 15.16% 84.84% 8 Booking.com 1.94% 81.09% 18.91% 9 Disney Parks 1.49% 80.38% 19.62% 10 Facebook Source: Experian Marketing Services Hitwise 1.43% 0.26% 99.74% Engaging the Connected Traveler 10

12 For Mexico-bound travelers, search terms about Cancun and nearby areas were widely popular. The top website receiving traffic from these search terms was TripAdvisor, again suggesting the importance of research and reviews to the consumer. That being said, a large number of travel agencies, such as Expedia and Bookit.com, were visited directly after the search, indicating that many international travelers in this segment rely on the Internet to make their bookings. Websites receiving traffic from terms in Mexico Travel 12 Rolling Weeks ending June 22, 2013 Websites Search Clicks Paid: Organic Rate 1 TripAdvisor 13.19% 13.88% 86.12% 2 Expedia 5.93% 69.64% 30.36% 3 Bookit.com 5.13% 82.12% 17.88% 4 Google Maps 4.48% 0.00% % 5 Wikipedia 2.74% 34.65% 65.35% 6 Facebook 2.58% 0.00% % 7 CheapCaribbean.com 1.64% 85.41% 14.59% 8 YouTube 1.57% 0.00% % 9 Yahoo! Travel 1.50% 0.00% % 10 Cancun Online Source: Experian Marketing Services Hitwise 1.44% 0.00% % 11 Engaging the Connected Traveler

13 Another important trend among Mexico-related search terms was the inclusion of the terms resort or all-inclusive. To further test this market, we looked at search trends surrounding all-inclusive travel. While Mexico and the Caribbean remain popular destinations, there is a growing interest in domestic locales, including Hawaii, Miami, and Myrtle Beach. Additionally, there is a high rate of searches that contain the phrase 2013 this year, which indicates that consumers are looking for new, undiscovered vacation options. Important keywords also included best, discount, and new, all search term qualifiers. Keywords in All Inclusive Travel 12 Rolling Weeks ending June 22, 2013, compared with June 23, 2012 Keywords Searches 06/22/2013 Relative Difference % % 2 Airfare 0.50% % 3 Trips 0.68% % 4 Cozumel 0.58% % 5 Expedia 1.35% % 6 Best 2.00% % 7 Wyndham 0.27% % 8 South 0.29% % 9 Honeymoons 0.38% % 10 What 0.30% % Source: Experian Marketing Services Hitwise Marketing Tip: When relevant, include top search terms in your online content, especially headlines and keywords, to optimize search engine rank and engage travelers searching for general content. Engaging the Connected Traveler 12

14 Once they arrive - they are active and spenders The Connected Traveler is, on average, more affluent than their average American counterparts. It stands to reason, then, that Connected Travelers spend more while on their trips than average. In fact, 30% of these travelers spent $1000 or more on their last domestic trip, and 35% spent over $3000 when traveling outside of the country. Amount spent on last domestic trip 100% 29% 100% Amount spent on last foreign trip 35% 50% 21% 20% 50% 29% 0% 30% Domestic Connected Travelers 0% 21% 14% Foreign Connected Travelers <$300 $300 $499 <$1,500 $1,500 $2,999 $500 $999 $1,000+ $3,000 $4,999 $5,000+ While on their vacations, Connected Travelers over-index on almost every activity, revealing their wide range of preferences and their desire to try out new experiences. While sightseeing and going to the beach are by far the top desired activities for this consumer segment, they also enjoy active adventures, such as hiking, boating, and skiing. Vacation Activities Like to Do Sightseeing Go to the Beach Shopping Fine Dining Attend a Specific Event Camping/Hiking Gambling Fishing Boating Water Sports Visit a Spa Playing Golf Snow Skiing/Snow Boarding Tennis 0% 10% 20% 30% 40% 50% 60% 70% 80% Connected Traveler All Adults 13 Engaging the Connected Traveler

15 Summary There is a wealth of information about this lucrative segment. Now the question is what can marketers do with this information? By carefully analyzing consumer insights like the ones presented in this report, marketers can better cater their offerings to the consumers they most want to target. To target Connected Travelers: Optimize your content for all devices, specifically mobile and tablets, by considering the tactical experience Develop new, exciting offers to appeal to these consumers desire to be the discoverer among their friends Consider pairing with local organizations to offer insider information in preferred destinations Be aware that this segment is a part of multiple loyalty programs, and offer strong benefits to win their business every time For more actionable consumer insights to create a more effective marketing strategy, visit Engaging the Connected Traveler 14

16 Experian Marketing Services 300 Park Avenue South, 9th Floor New York, NY T: Intelligent interactions. Every time Experian Information Solutions, Inc. All rights reserved Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners. Experian is a nonexclusive full-service provider licensee of the United States Postal Service. The following trademark is owned by the United States Postal Service : ZIP. The price for Experian s services is not established, controlled or approved by the United States Postal Service. 07/2013