TEXT100 DIGITAL INDEX: TRAVEL & TOURISM STUDY

Transcription

1 TEXT100 DIGITAL INDEX: TRAVEL & TOURISM STUDY

2 CONTENTS INTRODUCTION About the Study Pg 3 INSIGHTS: TRAVEL & TOURISM TOP 10 OBSERVATIONS Sections: General Travel Patterns Points of Influence for Vacation Decisions Exploring the Role Digital Reviews & Social Media Play in Vacation Decisions Purchasing Preferences Technology on Vacation Pg 6 Pg 9 Pg 14 Pg 19 Pg 20 CONCLUSION Pg 29

3 INTRODUCTION Digital technology and the connectivity it brings has disrupted the way decisions are made from getting informed and the transaction itself to the experience and how it is shared. This is evident in many industries and has resulted in new business models emerging to capitalize on new opportunities and ways to engage, influence and win consumers. The travel and tourism sector is one that has clearly been disrupted by digital technology. To gain current insights into the key trends and influences in the four major segments of the consumer decision cycle: inspiration, decision, purchase, and experience, Text100 commissioned a survey to examine how digital technologies have contributed to fundamental changes in the tourism industry. This research aims to offer a better understanding of how travelers decide on destinations, plan the finer details of their trip, as well as the technology they use and how they share their experiences. Armed with these insights, travel-related companies can develop more targeted and integrated consumer outreach ultimately leading to richer consumer experiences. While today s consumers base their vacation decisions on far more digital and physical touch-points than ever before, the core values that drive tourism quality service, authenticity, and experiences worth talking about remain the same. Integrating service offerings across platforms in a manner that speaks directly to how consumers already inspire, decide on, purchase and experience their travels is paramount. We have extracted ten key observations from the survey findings that zoom in on leisure travel patterns, points of influence and preferences, as well as the use of digital technology and impact of social media. Overall we found that consumers are making travel decisions by simultaneously assessing information from an unprecedented variety of channels both digital and non-digital. Because of this, travel operators and communications professionals alike must increasingly integrate their efforts across platforms, focusing more on actual purchasing behaviors and motivations than sales and promotions have done in the past. 3

4 ABOUT THE STUDY The first installment of the Text100 Digital Index on Travel & Tourism seeks to understand trends along the consumer decision cycle and provide a benchmark of the key trends globally and across the US, Europe (EMEA) and Asia Pacific (APAC) specifically on where the Internet and social media platforms are gaining greater influence. The findings are based on online interviews with 4,600 respondents across 13 countries where all had traveled for leisure purposes in the last 12 months or intended to do so in the next 12 months. Countries: Australia, China, Denmark, France, Hong Kong, India, Malaysia, Singapore, South Africa, Spain, Sweden, UK and US. Conducted by Redshift Research. 4

5 INSIGHTS: TRAVEL & TOURISM TOP 10 OBSERVATIONS

6 GENERAL TRAVEL PATTERNS To lay the foundation for this study, it is important to understand the general trends around vacation travel where people tend to travel, the length of the break and the main impetus for choosing a destination. Growth of the staycation (domestic vacations) where in the last 12 months more vacations have been taken within the country rather than international vacations. US respondents travel less outside their country than other regions. 6

7 More frequent but shorter Within-country vacations are much more frequent, but they are also shorter in duration. Around 80% of all local vacations are a week or less in duration, whereas a trip abroad is more likely to be two weeks or longer (41%). Across the regions, travelers in the US are more likely to take short vacations as compared to travelers in EMEA. Weekend breaks are a lot more popular in the US at 26%, which is higher than the global average of 15% of travel. In APAC and EMEA, more than a third of travelers preferred to take one week vacations. 7

8 When asked what was the reason underpinning choice of location or activities... Unsurprisingly, value for money is one of the main reasons for choosing locations or activities. However, considerations such as relaxation, the call to experience something different and recommendations by friends were also key reasons for choosing a particular location or vacation activity. Interestingly, over 40% of travelers globally also chose a vacation activity based on how fun it looked. US travelers rate fun highly as an option of choosing a vacation, while EMEA travelers are more focused on knowledge enrichment and escapism and are comparatively less worried about convenience than the other regions. US travelers see relaxation as a more important choice factor than the other regions when choosing their vacation destination. Travelers from APAC put a greater weight on recommendations from friends and on the convenience factor. They also consider special needs suitability/requirements and are generally more into Eco-tourism. 8

9 POINTS OF INFLUENCE FOR VACATION DECISIONS THIS SECTION LOOKS AT THE DIFFERENT POINTS OF INFLUENCE ON DECIDING THE VACATION DESTINATION AND FINER DETAILS OF THE TRIP Recommendations from family / friends came in front as the top influence on the choice of a vacation destination (63%) ahead of Internet searches (55%). This also stands true for informing the finer details of the trip. 9

10 While the Internet has become more influential than travel agents when choosing a vacation, 39% of travelers still use traditional travel agents. Online travel sites and tourist board websites are also visited quite often at 46% and 41% respectively. What is surprising is that travel agents are still consulted quite often, especially on finer details of people s trips a trend which speaks to the more specialized nature of travel agents today. 10

11 Only a third of those polled agreed that mileage/loyalty point program deals influenced their choice of vacation destination. Deal sites are also low in usage in making a decision on destination, yet sales and promotion are fourth on the list of what influences the decision on where to go on vacation, leading to the conclusion that more linkage is required for mileage/loyalty point programs and promotional sales to rise as a vector of influence. 44% of respondents strongly agree/agreed that Internet reviews by travel bloggers helped with the initial decision of vacation destinations, with the most trusted sources of vacation research coming from vacation makers themselves. This is followed by 37% online travel forums, 27% Facebook, 24% Youtube/ Vimeo, 22% Pinterest. When asked what is the single most important source of information critical to the decision process, 37% of respondents selected recommendations from friends and family. Nearly half of year olds consider family and friends recommendations as the most important factor, compared to only a third of 65+ s. Interestingly, the importance of individual providers websites increases with age. 11

12 Drilling down to social media as a point of influence, it is interesting to note that APAC travelers stand out in terms of their use of social media platforms to inform their leisure travel decisions. Especially in China and India, Internet and travel reviews have a greater impact on initial decision of vacation destination at 71% and 69% respectively for China and 59% and 53% respectively for India. Malaysia also comes in higher than the global average on this front. 12

13 INSIGHTS Campaigns to influence choice of vacation destinations need to be integrated across traditional, web and social media platforms with key focus on the target audiences direct circle of influence their friends and family. Online information is gaining in prominence with traditional travel agents becoming less important comparatively but still relevant. Blogs were the most highly rated of the social media platforms on their influence on destination choices and finer details of the trip. This is likely due to the level of trust in the source as well as accessibility of information. Loyalty programs are less likely to influence decisions, but sales/promotions ranked fourth in factors that contribute to a destination decision. These trends are evolving rapidly as younger generations who are more comfortable with the internet and social platforms age. Digital disruption is not as dramatic at the point of destination decision and the vacation planning phase. 13

14 EXPLORING THE ROLE DIGITAL REVIEWS & SOCIAL MEDIA PLAY IN VACATION DECISIONS Globally, over half the travelers polled have used Facebook, Twitter and other social media platforms to get travel inspiration with APAC respondents leading. 14

15 Information on prices/room rates and surrounding attractions is what people look for first and foremost when searching online for travel information. US travelers searched more for information on quality of facilities and cleanliness, while APAC travelers looked for information on special packages, weather and accessibility. They are also more concerned about the political stability of the destination, as compared to the other regions. Travelers in EMEA searched for information on quality of service and facilities, weather and cleanliness. 15

16 GLOBALLY, WEBSITES WITH VACATION REVIEWS WERE THE MOST POPULAR FOLLOWED BY PROFESSIONAL TRAVEL GUIDES AND TRAVEL COLUMNS. Breaking down into regions, travelers in APAC have much less trust in travel columns and have a slightly increased preference for professional travel guides comparatively. Segmenting by gender, men are more likely to trust professional reviews, while women prefer vacation reviews. subject or someone who openly represents an organization) were seen as less independent. Independence of reviews is very important The independence of reviews is seen as very important and this is linked directly to trust and believability. Independence is judged on balance of comments. As such, reviews written by a person involved in tourism (authority on the 16

17 In terms of demographics, more frequent travelers make the most use of social media networks and those aged are the most likely to use social media networks to get ideas and inspiration for their travel plans. 17

18 INSIGHTS When looking at digital reviews, first and foremost travelers want information around prices and the surrounding attractions within the vicinity of their intended destination. This suggests that reviews might benefit from including more content from independent / peer sources like vacationers and incorporate a rating on value for money aspects to aid consumer decisions. As the independence of the review and trust levels are important considerations, individual providers campaigns should offer tools to encourage reviews but not unduly influence the positivity of the review. 18

19 PURCHASING PREFERENCES KEY DIFFERENCES IN THE ONLINE PURCHASING PREFERENCES BETWEEN TRAVELERS FROM THE THREE REGIONS Travelers in APAC are more likely to click on online links and ads to purchase accommodation or transportation tickets. US travelers were the least likely to purchase accommodation and transportation tickets from tourist board websites in comparison to the other regions. Comparatively, EMEA travelers were least likely of the regions travelers to use online travel websites for accommodation/transport and tickets to attractions/activities. INSIGHTS The insights tell us that while there are similarities on how travelers gain inspiration and select vacation destinations and what to do while on vacation, there are key differences on how they fulfill the plans and chose to transact. It would pay to consider these variables when planning activations or campaigns that are global or regionally focused or when considering which purchasing trends to build upon or encourage. 19

20 TECHNOLOGY ON VACATION KEEPING IN TOUCH WITH FAMILY/FRIENDS IS BY FAR THE MOST IMPORTANT USE OF MOBILE DEVICES WHILE ON VACATION 20

21 CHECKING SOCIAL MEDIA NETWORKS ON A MOBILE DEVICE IS MORE COMMON THAN CHECKING THE NEWS It s a global trend that travelers place great importance on keeping in touch with friends and family with their mobile device. People from APAC use their mobile devices much more on vacation than anywhere else, particularly doing work-related s. 21

22 MAJORITY OF TRAVELERS DOWNLOAD TRAVEL APPS BEFORE GOING ON VACATION WITH MAPS BEING THE MOST POPULAR Over 50% of people are likely to download travel apps related to their vacation before they go. Overall, APAC travelers have a much greater tendency to download travel apps with only 11% not using them compared to 38% of US travelers. This correlates with the number of people with smartphones/tablets. The most popular app is (by 15%) Google Maps. Taking Google Maps out, the more generic maps and Tripadvisor become the most prominent apps to be downloaded before going on vacation. City guides, local weather, restaurant finder apps and public transportation apps are also very popular while on vacation. 22

23 INSIGHTS Having Internet connectivity on devices such as smartphones, notebook computers and tablets while on vacation is crucial for staying in touch with loved ones. Travelers in the APAC region relax less on vacation than their counterparts in EMEA and NA, with nearly a quarter still checking work s whilst on vacation. The majority of people download apps before they go on vacation and the most popular have to do with location (where people can save time in finding desired places) and weather (people can plan their activities depending on the weather). Interestingly, people use mobile devices more for social media especially to stay in contact with friends and family than keeping up-to-date with current affairs. This shows that people like to stay on track with their social life back home even while vacationing but are less concerned comparatively about news and current affairs. 23

24 WIFI CONNECTIVITY IS CATALYST Interestingly, nearly half the respondents would be persuaded to get more involved in social media on vacation if free WiFi was available. A quarter of people stood firm and could not be persuaded to use social media while on vacation. 24

25 POSITIVE EXPERIENCES ARE MORE LIKELY TO BE POSTED Independent of location, consumers highlighted certain common values when traveling, including a desire to share and base decisions on honest, compelling content about individual travel experiences. Positive experiences are more likely to be posted, with APAC seeming to post the most positive comments. There are also clear variations in what travelers share online regarding their vacations. APAC travelers enjoy commenting about shopping and fine food more than anywhere else. EMEA travelers comment about historical sites more than the other regions, which correlates to their interest in them. The same can be said about US travelers and their comments on museums and galleries as well as amusement/theme parks. 25

26 Sharing self made videos or photos are the most popular action during and post vacation. 25% of respondents are proactively writing reviews after a vacation versus 20% during the vacation itself. APAC travelers are much more likely to interact on social media networks while on vacation such as sharing blog posts or news stories related to their travel destination, liking the location on a social media network and checking-in at a physical location. However, US vacationers are much more likely than vacationers in other regions to write a review on a travel related forum while on vacation. 26

27 CONTENT THAT IS DEEMED INTERESTING TO OTHERS IS AN IMPORTANT FACTOR IN PERSUADING PEOPLE TO CREATE MORE ONLINE CONTENT AND GET MORE INVOLVED IN SOCIAL MEDIA NETWORKING SITES CONTENT THAT IS DEEMED INTERESTING TO OTHERS IS AN IMPORTANT FACTOR IN PERSUADING PEOPLE TO CREATE MORE ONLINE CONTENT AND GET MORE INVOLVED IN SOCIAL MEDIA NETWORKING SITES CONTENT THAT IS DEEMED INTERESTING TO OTHERS IS AN IMPORTANT FACTOR IN PERSUADING PEOPLE TO CREATE MORE ONLINE CONTENT AND GET MORE INVOLVED IN SOCIAL MEDIA NETWORKING SITES More than a third of respondents said they would create or share content online if they thought it would be of interest to family and friends. But then again, travelers could also be persuaded via loyalty discount schemes ( what s in it for me? ). 27

28 INSIGHTS The impact of online platforms and social media networks in the travel tourism space is becoming more pervasive. This can be seen by the growth in travel related apps which drive check-ins, likes, and posts. This trend is likely to continue and industry players must understand motivating factors and harness the power of online engagement by connecting communities based on interests. Also an interesting trend to follow will be how industry players evolve their outreach and activations with travelers with an integrated, authentic and influential approach locally, regionally and globally. 28

29 CONCLUSION The study s data suggests that travel and tourism operators need to center their core business strategies around customer service based on this type of market insight. Our data details the channels through which travelers are making decisions and purchases and these channels differ greatly according to location and age. The travel and tourism industry must make decisions based on insights particular to their own businesses, particularly by developing market-specific buyer persona profiles based on research, workshops and analysis, rather than aiming for sweeping conclusions about travelers as a whole. Our research also suggests that businesses stand to gain significantly if they can deliver proactive and immediate customer service, with additional benefits stemming from integration across channels and platforms. Many industry leaders, including several of Text100 s clients, have begun integrating social media with other channels to drive successes in this area. Finally, the data confirms that customer decisions are increasingly though not exclusively based on content created and shared by peers. By offering customers the technological infrastructure needed to create, share and receive content about travel experiences, businesses can leverage this growing social capital to establish themselves as operators of choice in an increasingly fragmented industry with rapidly declining barriers to competition and entry. In short, travel and tourism operators need to engage their leads and customers with multichannel integrated communications, aiming to foster loyal brand communities based on a traveler s natural desire to talk about and recommend good experiences. 29

30 ABOUT TEXT100 DIGITAL INDEX: TRAVEL & TOURISM The Text100 Digital Index: Travel & Tourism study was conducted by Redshift Research in October 2012 and consists of 4600 online interviews spanning 13 countries. All respondents had traveled for leisure purposes in the last 12 months, or intended to do so in the next 12 months. Responses were balanced across regional, age and gender demographics. This study is part of Text100 s Digital Index series, which aims to deliver insights specific to a range of industries experiencing rapid change as a result of digital technology adoption. ABOUT TEXT100 We are the I.D.E.A. agency. We help our clients understand what matters to their audiences and create integrated stories to participate in conversations that inspire action. As a global communications consultancy, we use our I.D.E.A. consulting process to develop audiencefocused campaigns that are insightful, creative, impactful and focus on digital environments as well as traditional media and influencers. We have a global staff of more than 500 and a direct presence in 30 cities worldwide. We work with many of the world s elite brands and industry pioneers in travel and tourism, entertainment, technology, telecommunications, healthcare, automotive and energy all of whom engage Text100 to think differently and to be innovative in today s fast moving communications world. Our client roster includes British Airways, KAYAK.com, AirBnB, Sofitel, MTV, Food Network, Facebook, IBM, Skype, Cisco, Vodafone, PayPal, and Lenovo. Our Text Factor makes us different and has been praised around the world. We have been recognized as the leading Digital Consultancy in APAC, the Best Midsize Agency to Work For in the US, and one of the UK s Best Small Companies. For more information about Text100, please visit 30

31 CONTACTS ROWAN BENECKE Regional Director (US) Tel: CECILE MISSILDINE Regional Director (EMEA) Tel: ANNE COSTELLO Regional Director (APAC) anne.costello@text100.com.au Tel: