Travel Flash Report. Booking on mobile goes mainstream

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1 Travel Flash Report. Booking on mobile goes mainstream SEPTEMBER 215

2 1 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM Introduction. Since 214, Criteo has analyzed more than 1 billion bookings generated by hundreds of travel suppliers and online travel agencies worldwide making us a central source of the trends happening now in the travel industry. This report includes a number of new observations and recommendations on how travel advertisers can better leverage the mobile opportunity. Key takeaways: Mobile accounts for most of the overall growth in travel bookings since 214, as the share of mobile bookings has almost doubled, increasing from 12 percent to 23 percent between Q2 214 and Q2 215 worldwide. And mobile adoption appears to benefit all travel sub-categories. Mobile apps are generating 49 percent of mobile bookings for advertisers who invest in in-app tracking and advertising (worldwide, air and hotel categories), up from just 12 percent a year ago. The booking device of choice changes depending on many factors: time of day, day of the week, duration of stay, type of travel booking, etc. Smartphones account for a remarkable 47 percent of same-day hotel bookings (58 percent if tablets are included). 21 percent of online bookings are not correctly measured by advertisers, because the final transaction occurs on another device than the one where the click was made. It is even higher at 2 when the click is made on a mobile device. Hotel OTAs generate a higher share of bookings on smartphones compared to suppliers (21 percent vs. 7 percent), and the difference increases as the season progresses.

3 2 ALL TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM # % UNITED STATES 3 7 SWEDEN 2 72% CANADA 2 74% DENMARK Travelers are mobilizing! TURKEY 21% 4% 2 7 AUSTRALIA 2 7 JANUARY FEBRUARY MARCH APRIL MAY JUNE OTA SUPPLIER Increase of the mobile share since Q1 214 (Index, worldwide) [1] % COUNTRY GROUP TOTAL DESKTO JAPAN 24% 3 7 SPAIN 23% SOUTH KOREA 21% 2% 23% UNITED KINGDOM 22% 7 NETHERLANDS 1 22% 7 ITALY 21% 7 THE FRANCE SHARE OF BOOKINGS IS 21% 7 CONTINUOUSLY GERMANY GROWING 8 AUSTRIA 8 BELGIUM Between Q2 214 and Q2 215, the share of 8 BRAZIL 8 mobile AMERICAS bookings has almost 1 doubled, increasing 2 from APAC12 percent to 23 percent 1 worldwide, with 2 EMEA 21% fairly consistent growth across all markets. Mobile 7 accounts for most of the overall growth in travel 1 bookings since mobile than others. In most Western countries, the 3 Share of booking by device across select countries [2] share of bookings coming from mobile devices is 2 more than 2 percent; in Japan it s greater than 3 TOTAL percent, while Latin America and some EU markets, 6 COUNTRY GROUP like Germany, DEVICE lag behind. 1 JAPAN 24% UNITED STATES 3 7 SWEDEN 2 72% As for device preference, there are still more online AIR2 CANADA 2 74% bookings generated on tablets than on smartphones DENMARK TURKEY 21% 4% 2 7 HOTEL in tablet-loving Q3 214 EMEA, while Q4 214 smartphones Q1 215 dominate Q2 215 AUSTRALIA 2 7 in APAC SPAIN 23% and the US. JAN FEB MAR APR MAY JUN SOUTH KOREA 21% 2% 23% PACKAGES Increase in mobile bookings by travel sub-category UNITED KINGDOM 22% 7 NETHERLANDS 1 22% between H1 214 and H1 215 [3] 7 ITALY 21% 7 FRANCE 21% 7 GERMANY 8 AVERAGE BOOKING VALUE AUSTRIA 8 COUNTRY RAIL (1 = BOOKING VALUE ON ) AIR PACKAGES CAR HOTEL APARTMENTS BELGIUM 8 BRAZIL 8 4 FRANCE3 9 AMERICAS 1 2 APAC % GERMANY EMEA 21% ITALY 11% 1 ALL SUB-SECTORS BENEFIT 93% JAPAN Mobile adoption appears to benefit all travel sub-categories, with apartment rentals leading the pack at 31 percent mobile 44% NETHERLANDS 9 bookings. The car rental segment is growing the fastest, with 4 mobile bookings growing from 18 percent to 26 percent YOY. SPAIN UK 92% [1] Jan 214 June 215, worldwide, all travel sub-categories, OTAs, and suppliers, excluding apps. 6 [2] June 215, worldwide, all travel sub-categories, OTAs, and suppliers, excluding apps. 3 US [3] H1 214 and H1 215, worldwide, OTAs, and suppliers, excluding apps Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q2 215 ADOPTION IS GROWING, BUT VARIABLE 14 Within the travel sector, some regions are more ALL H1 214 H1 215 H % 2% 3% 4% H H1 214 H H H H % H H H %

4 3 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM TOTAL COUNTRY GROUP JAPAN 24% 3 7 DEVICE MATTERS UNITED STATES 3 TOTAL 7 SWEDEN 2 72% CANADA COUNTRY Mobile GROUP users appear to prefer certain 2 devices for 74% DENMARK JAPAN certain bookings. For 24% example, tablets generate 3 7 TURKEY UNITED STATES 21% 4% AUSTRALIA SWEDEN more bookings than smartphones for the 2 2 air and 7 72% SPAIN CANADA 23% 2 74% packages categories, but the opposite is true for SOUTH DENMARK KOREA 21% 2% 1 23% 2 7 UNITED TURKEY hotels. KINGDOM 21% 4% 22% NETHERLANDS AUSTRALIA 1 22% ITALY SPAIN 21% 23% 7 FRANCE SOUTH KOREA 21% 2% 21% 23% 7 GERMANY UNITED Average KINGDOM booking values for tablets and smartphones 22% 8 7 AUSTRIA NETHERLANDS compared to desktop, for main travel 1 categories 22% [2] 8 7 BELGIUM ITALY 21% 8 7 BRAZIL FRANCE 21% 8 7 Country AMERICAS GERMANY APAC AUSTRIA Smartphone BELGIUM France 8 EMEA 21% 7 9 BRAZIL 8 AMERICAS Smartphone 1 34% Germany 2 APAC EMEA Smartphone 21% 6 7 Italy 11% 159 Smartphone 93% 1 14 Japan 9 Smartphone 44% 159 Netherlands Smartphone 4 Spain 9 Smartphone 5 UK 6 4 US 2 Q3 214 Smartphone Q4 214 Q1 215 Q % DEVICE Share of bookings by device for main travel categories [1] AIR DEVICE HOTEL AIR PACKAGES HOTEL PACKAGES COUNTRY FRANCE COUNTRY GERMANY FRANCE ITALY GERMANY JAPAN ITALY NETHERLANDS JAPAN SPAIN NETHERLANDS UK SPAIN US UK US AVERAGE BOOKING VALUE (1 = BOOKING VALUE ON ) 1% 2% 3% 4% 4 9 AVERAGE BOOKING VALUE (1 = BOOKING 34% VALUE ON ) % 11% 6 93% % 44% 93% % % % 1% 2% 3% 4% The average booking value is, in most markets, lower on smartphones, notably because these devices are used more often for shorter stays (see page 4). Interestingly, tablets reach desktop levels in most other countries. Among major markets, Japan remains the only country where average booking values are equal across all devices Share of bookings on mobile devices for advertisers using in-app [3] WEEKD WEEKE WEEKDAY WEEKEND ALL Q3 214 Q4 214 Q1 215 Q2 215 JUNE ALL [3] June July 215, Worldwide, Air and Hotel, Comparators excluded IN-APP BOOKINGS ARE A HIT For advertisers who have already invested in in-app in the air and hotel sub-categories, mobile apps H1 214 RAIL AIR PACKAGES CAR HOTEL APARTMENTS are generating 49 percent of all mobile bookings RAIL AIR PACKAGES CAR HOTEL APARTMENTS (worldwide), up from just 12 percent a year ago. In- 3 3 app advertising and proper tracking are increasingly H H H H H H H H % % H H H % 31% becoming must-haves for travel advertisers. 51% 51% JUNE JUNE JUNE JULY 215 JULY 215 [1] June 215, in ES, UK, US, NL, IT, JP, DE, FR, AU OTAs and suppliers, excluding apps. [2] June 215, in US, UK, ES, NL, IT, JP, DE, FR, AU Hotel, Air, Packages OTAs and suppliers, excluding apps. IN-APP WEB IN-APP WEB

5 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM #2 Smartphones dominate for last-minute bookings Bookings by device during weekdays and weekend days in the US [1] TO EACH DEVICE A TIME AND PLACE TOP) 1% WEEKDAY WEEKEND AND MORE DAYS BEFORE CHECK-IN Bookings by device when getting closer to the check-in day [2] Travelers clearly have preferences HOTEL when it comes to DURATION OF STAY when they 1 book NIGHT and with which device. The share of smartphone bookings is significantly higher during the weekend 1 (+9 points). In the US, weekend bookings are nearly 4 percent mobile (+11 points). 72% During weekdays, travelers also have their preferred moments. Smartphones account for 22 percent of the 2-7 NIGHTS MORE THAN 7 NIGHTS bookings in the morning (37 percent including tablets) and just 16 percent in the afternoon. This pattern applies across all sub-categories and is especially pronounced in regions like France and Germany, where the share of 82% smartphone bookings can swing from 7 percent to 25 percent depending on the hour of the day and the day of the week. FOR A LAST-MINUTE HOTEL BOOKING, TRAVELERS GRAB A 14 Smartphones account for a remarkable 47 percent of same-day hotel bookings. Add in tablets, and the share is 58 percent. This is a clear reason to think mobile-first for those last-minute room discounts and offers PAGE VIEWS JANUARY FEBRUARY MARCH APRIL MAY JUNE EUROPE APAC EMERGING MARKETS LATAM NORTH AMERICA 74% 6- PAGE VIEWS MORE THAN PAGE VIEWS Advertisers should think mobile-first for last-minute JAN room discounts and offers JUN 1 72% 83% [1] June 215 all travel sub-verticals, OTAs, and suppliers, United States; excluding apps [2] Worldwide, Hotels, June 215 OTAs and suppliers, excluding apps. 4

6 2-7 NIGHTS MORE THAN 7 NIGHTS TOP) 1 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM 9 5 1% % 14 1 AND MORE DAYS BEFORE CHECK-IN SKTOP PAGE VIEWS 74% 6- PAGE VIEWS Bookings by device, depending on the number of page views before booking [1] 1 72% MORE THAN PAGE VIEWS Bookings by device depending on the duration of stay [2] 1 NIGHT 2-7 NIGHTS HOTEL DURATION OF STAY 83% MORE THAN 7 NIGHTS 82% THE JOURNEY BEFORE THE JOURNEY 6 Smartphones are often preferred for making a simple 4 booking, while consumers appear to prefer desktops 2 during the comparison phase. Indeed, among bookings preceded JANUARY by fewer FEBRUARY than five MARCH page views, APRIL more MAYthan 18 JUNE percent are made EUROPE from APAC smartphones. EMERGING MARKETS But LATAMfor NORTH bookings AMERICA preceded by more than page views, smartphones account for only 7 percent. JAN vital. JUNCriteo observes 1 that 21 percent of online bookings 72% 3 This shows the clear role smartphones have in the buying journey, and emphasizes why cross-device tracking is so are not correctly measured by advertisers, because the 4 final transaction occurs on another device than the one where the click was made. It is even higher at 26 percent when the click is made on a mobile device. Users simply finalize their bookings on the devices of their choice. SHORT STAY, SMALL SCREEN ALL 2 When booking shorter stays, travelers tend to use mobile devices more often. Smartphones in particular account for just 1 percent of bookings for stays of a week or more, but they register 18 percent of one-night stays. 1 1 s are very stable and remain around 1 percent 5 regardless of the duration of the stay % 1 21% of online bookings JANUARY FEBRUARY MARCH APRIL MAY JUNE are not correctly OTA SUPPLIER measured by advertisers % 8 [1] June 215 Worldwide Hotels OTAs and suppliers, excluding apps. [2] Worldwide, Hotel advertisers, June 215, excluding apps Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q2 215

7 JANUARY FEBRUARY MARCH APRIL MAY JUNE TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM OTA SUPPLIER 1 # % 8 6 Travel season is mobile season 4 Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q Share of hotel bookings by month, from January to June 215 [1] 1 The spring and summer seasons see an acceleration of mobile adoption. Bookings made on smartphones grow steadily between January and June in most regions, except in the Southern Hemisphere. Hotel bookings made on smartphones increase from 12 percent to 18 percent between January and June. This is partly because of seasonal travel, but also because travelers are more likely to be out and about (and away from a desktop) as the summer progresses. JAN FEB MAR APR MAY JUN [1] H1 215 US, UK, ES, NL, IT, JP, DE, FR, AU Hotels OTA and suppliers, excluding apps. 6

8 7 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM Share of bookings on Smartphone for OTAs and suppliers, H1 215 [1] HOTEL OTAs LEAD IN 2 The share of bookings generated from smartphones is roughly three times higher for OTAs vs. hotel suppliers ALL % themselves, and the disparity increases throughout the travel season from 19 percent to 26 percent from January to June, while suppliers don t get past the 7 percent mark during the entire period. JANUARY FEBRUARY MARCH APRIL MAY JUNE OTA SUPPLIER % Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q JAN FEB MAR APR MAY JUN [1] H1 215 US, UK, ES, NL, IT, JP, DE, FR, AU Hotel OTA and suppliers, excluding apps.

9 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM Conclusion Implications for travel advertisers: Comprehensive tracking across all devices can account for 21 percent uplift in campaign bookings, as decisions and transactions take place on all devices. Advertisers who invest in in-app tracking and advertising generate almost half of mobile bookings (4) directly from applications. As complexity increases in all possible ways for advertisers seasonality, users behaviors, devices programmatic buying becomes a media planning facilitator. Methodology: This report comes from the analysis of data collected from more than 5 travel advertisers since early 214, worldwide. Comparators were not taken into account. Instead, the study focuses on travel suppliers and online travel agencies. The number of bookings are those measured directly on advertisers websites and do not reflect the activity of Criteo. This methodology is compliant with the one used for the Mobile Commerce Report published by Criteo every quarter. Authors: Daniele Beccari, Charlotte Catimel, Florent Maillard 8

10 9 How Criteo helps travel advertisers. Covering: AIRLINES HOTELS RAIL CAR RENTAL PACKAGES ACTIVITIES OTAs CRUISE DATA-DRIVEN ROI - Programmatic media buying based on individual user value - Personalized recommendations for true 1:1 marketing - Yield- and value-based targeting VOLUME & SCALE - Global reach of more than 1 billion monthly users* - Mobile on web and apps, ios and Android out of the box - Cross-device intent prediction BRAND CONTROL - Premium inventory on top-tier publishers - Flexible, self-optimizing real-time ads - Cross-sell campaigns GLOBAL COMPLIANCE - Global privacy compliance program - Advanced opt-out features - Multi-lingual and multi-currency campaigns * According to comscore MMX, Criteo exposes 1,65MM unique viewers worldwide (Age 15+, Worldwide, June 215).

11 TRAVEL FLASH REPORT: BOOKING ON GOES MAINSTREAM SEPTEMBER 215 About Criteo. Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. Criteo has over 1,6 employees in 27 offices across the Americas, EMEA and Asia-Pacific, serving over 8,5 advertisers worldwide and with direct relationships with over 1, publishers. For more information, please visit Copyright 215 Criteo

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