Customer Journey: Travel Consumer Journey for Travel Products Netherlands, Q2 2012 1
Management Summary Researching & purchasing (for booking a holiday as defined on slide 4) 71% of the holidays are booked online 94% of all holiday buyers do online research before purchase. 86% of all offline holiday buyers do online research before purchase. On- and offline buyers are very similar in behaviour, online is important in both groups. ACTION: Attribution model needed to assess impact of online channels on offline purchase. Research process The average process starts with selecting a country, then location and after that comparing a hotel at different retailers or comparing multiple hotels at one retailer. Aggregators and Search play an important role in the early stage of the research process. Offline bookers on average do 12.4 search navigations using 5.6 different queries (for online bookers this is 17.1 search navigations using 7 different queries) 61% of the search keywords used are generics. Generics keywords are most prominent both in the beginning and the end of the research process. ACTION: More attention for device queries in search advertising. Broadening the scope of the last click model Offline bookers do on average 92 days research before booking and offline bookers 83 days. In the above period offline bookers on average do 52 relevant online actions and online bookers 59. In the first half of all research actions, 68% of the retailer consideration set is fixed. So consumer research takes a long time and critical decisions are made in early stages of the research process, for which you don t account when steering on direct conversion. ACTION: Attribution model needed to quantify impact of touch points in early orientation phase. 2
Study scope: Getting insights in the customer journey With the rise of the internet, consumer behavior has become less predictable and is often no longer completely reflected by using the classic brand funnel that uses self claimed behavior. In this study questionnaire data is combined with passively measured behavior in order to derive detailed insights into consumer orientation behavior. Research questions answered in this deck 1 2 3 How do new consumers behave online and offline in their journey towards a travel purchase? What information sources do they use? (Search/comparison sites/retailer/provider etc.) How long is the journey and what is the order of events? 3
What is a booker? Definition booker Everyone who booked a holiday and matches the following criteria: Focus area Around focus area Scope Rest of Europe Outside Europe 91% 2% 4% 3% Booked between 1 June and 30 November 2011 Departure in 2011 Booked travel and stay Travel by plane Duration holiday 5 days To one of the countries in the focus area (red) The focus area are countries to which people booked a holiday, with around the focus area included in the orientation process. Together this scope comprises 93% orientation behaviour, only 7% of the orientation behaviour of bookers takes place elsewhere in the world. 4
Can consumers reflect on their purchase behavior? 25% 10x ~ 2/3 About a quarter of travel bookers don t know they re going to book a holiday 3 months before purchase Bookers consider ten times more brands than they expect upfront After the purchase bookers forget two third of the brands they considered Tracking of real behavior is needed 5
Media Efficiency Panel (Single source panel) Purchase, intentions and behavior measured from the same individuals Consideration, Preference, Purchase & Store visits Passive Online media behaviour Personal Psychographic Demographic 6
Browser Plug-in installed for 15.000 households Continuously measures and stores all online behavior since June 2010 URLS SEARCH QUERIES SEARCH RESULTS SEARCH ADS CLICKS (AD & OTHER) DISPLAY ADS CONTENT / KEYWORDS VIDEOS PRE ROLLS 7
Booking 71% of the holidays are booked online. 86% of the offline bookers researched online before booking offline. 94% of all purchasers researched online before booking. Research Online, Booking Offline Research All bookers Online Online & Offline Offline Online 38% 31% 2% 53% 44% 3% 46% Online purchases 71% 100% Offline 10% 15% 4% 29% 35% 51% 14% 100% 86% N = 207 Sample: Bookers 48% 94% 46% 6% 100% Examples of offline orientation: Friends/family, travel agencies, brochures and travel books Research online: questionnaire (Q26 = Internet) and/or registered online research (software GfK MEP panelists) Research offline: questionnaire (Q26 internet) booking online: questionnaire (Q23 = booked via internet or e-mail) booking offline: questionnaire (Q23 booked via internet or e-mail i.e. in store, by phone) 8
In general on- and offline bookers do not differ much The vast majority of online and offline bookers, do online research. Online bookers spend more time and actions on the online orientation process, but the overall process takes place in a narrower time span than offline bookers. Offline booker Online booker 86% Online orientation 97% Online orientation 52 Online actions 4 39% Search (reach) 59 Online actions 4 52% Search (reach) 5.6 Ø number of search queries 12.4 Ø number of search navigations 7.0 Ø number of search queries 17.1 Ø number of search navigations 92 days Duration 4.4 hours Time spend online 83 days Duration 5.5 hours Time spend online ~ 815 Ø cost per person for holiday N = 59 (*N=51) ~ 9 days Ø duration of a holiday ~ 650 Ø cost per person for holiday N = 148 (*N=125) ~ 10 days Ø duration of a holiday Sample: Bookers * Sample: Bookers who used internet during their orientation, travel agency visits excluded 9
Posting/ liking Website Visits Brand Search Folder Retailer visit Orientation process is quite uniform People tend to look for a country first, then for location and then compare a hotel at several retailers OR compare different hotels at one retailer. Aggregators and Search play a large role in these early phases 21 21 visits 10 7 5 3 1 20 19 18 17 16 15 14 13 12 9 11 8 6 4 2 Comparing a hotel Triggered? at several retailers 8 7 6 5 4 3 2 1 11 visits Looking for a 2 country 2 Looking for a 1 location 1 4 visits (twice same keyword in one session) 2 visits 2 1 Triggered? Comparing different hotels at one retailer 1 1 visits Start Purchase = Paid advertising = Kopstelling promo 10
Air Search Aggregator Last click scope is too narrow The last click model focuses on the last phase of research, whilst online also plays a big role in the early stages of orientation. Destination Retailer 33 33 visits 14 visits 6 visits 1 visit 2 visits Start 32 14 31 30 29 13 12 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 4 5 3 2 11 10 9 8 7 6 5 4 3 2 1 4 4 3 3 2 2 2 1 1 2 Last click scope based on 30 days cookie window 68% of retailer consideration set is fixed in first half of all orientation actions 67% of all unique actions are fixed in the first half of all orientation actions N = 190 Sample: Bookers, who used the internet during their orientation 1 1 1 Booking The steps 1. Define the sequence of visits. Which type of website (i.e. retailer, aggregator)) was in general closest to the moment of the booking. 2. Define the average number of visits per type of website (i.e. retailer websites) 3. Show the sequence for the average number of visits per type of website. 4. Specify websites per type and mark visits to the same website with the same colour 11
Air Search Aggregator Last click scope is too narrow average booker The last click model focuses on the last phase of research, whilst online also plays a big role in the early stages of orientation. Same color represents visit to same retailer 28 26 24 22 14 12 9 6 4 1 Destination Retailer 33 33 visits 14 visits 6 visits 1 visit 2 visits Start 32 14 31 30 29 13 12 27 25 23 21 20 19 18 17 16 15 13 11 10 8 7 5 3 2 11 10 9 8 7 6 5 4 3 2 1 4 4 3 3 2 2 2 1 1 2 68% of retailer consideration set is fixed in first half of all orientation actions 67% of all unique actions are fixed in the first half of all orientation actions 1 1 Booking N = 190 Sample: Bookers, who used the internet during their orientation The steps 1. Define the sequence of visits. Which type of website (i.e. retailer, aggregator)) was in general closest to the moment of the booking. 2. Define the average number of visits per type of website (i.e. retailer websites) 3. Show the sequence for the average number of visits per type of website. 4. Specify websites per type and mark visits to the same website with the same colour 12
Air Search Aggregator Family Van Zon Clickstream of a real booker (most average booker) Retired couple, beach holiday for 2 to Spain, online booker, booked @ Neckermann, slow decision-makers. 49 actions on vacation related websites, divided in: 11 retailers (33 visits), 8 aggregators (10 visits) Google (2 search queries) and 2 air websites (4 visits) Same color represents visit to same retailer Destination Retailer 29 32 30 33 visits 10 10 visits 2 visits 4 4 visits 0 visits 3 27 26 9 Solmar tours 25 24 8 7 Different destinations, accommodations and travel organizations 2 1 6 23 22 5 4 21 20 18 15 13 10 8 3 2 1 hotel Rose mar carden in spanje 7 6 4 2 One accommodation, different travel organizations Week 18 Day 129 Week 10 Week 6 Time before booking Week 4 Week 3 Week 2 Week 1 13
Air Search Aggregator Family Huisman Clickstream of a real booker (average search user) Couple without kids, relax holiday for 2 to Greece, online booker, booked @ Oad, medium decision-makers. 53 actions on vacation related websites, divided in: 11 retailers (30 visits), 5 aggregators (8 visits), Google (10 search queries) and 4 destination websites (5 visits) Same color represents visit to same retailer 29 27 25 18 17 15 13 9 7 3 Destination Retailer 30 30 visits 8 7 8 visits 10 visits 0 visits 5 visits 6 28 26 Last minute griekenland 24 Last minutes griekenland 5 22 Last minute griekenland 21 20 10 8 5 4 3 2 1 Last minutes griekenland Ross vakantie griekenland 19 Last minute griekenland Last minute zuid kreta 16 14 12 11 Experia vakanties griekenland 4 Malta vakantie 3 2 Oad.nl kreta 1 Week 14 Day 99 Week 9 Week 6 Week 3 Week 2 Time before booking 14
Website visits: retailers and aggregators play a prominent role in the orientation process Offline bookers Visited relevant website Ø Number of different websites visited Number of websites visited website visitors Total 21.4 0 1 2-4 5-7 8+ Retailer 12.2 5% 11% 20% 13% 52% Aggregator 6.3 17% 12% 19% 15% 38% 85.1% Air 1.1 43% 26% 28% Destination 1.9 36% 22% 26% 16% N = 59 N = 50 N = 50 Online bookers Visited relevant website Ø Number of different websites visited Number of websites visited website visitors Total 20.4 0 1 2-4 5-7 8+ Retailer 11.9 3% 11% 14% 14% 59% 85.2% Aggregator Air 1.1 6.1 14% 16% 52% 21% 15% 19% 34% 25% Destination 1.2 52% 17% 25% 4% N = 148 Sample: Bookers N = 125 N = 125 Sample: Bookers who visited websites during their online orientation 15
Search: 50% of all bookers used Search during their online research process, generic keywords are important. All bookers Used Google search Ø Number of search queries Number of search queries Google search users Total 6.6 0 1 2 3 4+ Generic 3.7 23% 20% 19% 9% 29% Accommodation 1.9 47% 17% 10% 6% 20% 50.0% Travel org 0.5 66% 20% 13% 0% 1% Accommodation/generic 0.2 83% 15% 1% 0% Travel org/generic 0.2 84% 12% 2% 2% 0% Travel org/accommodation 0.1 94% 4% 2% All 0.0 99% 1% N = 221 N = 113 N = 113 Online and offline bookers show similar search behavior and have therefore been aggregated. Sample: Bookers All search queries are always matched in combination with a destination. Sample: Bookers who used search during their online orientation Back button use excluded. 16
In the travel market, besides the destination, Search is very generic. Bookers don t tend to combine different types of keywords in one search query. All bookers 2% 0% 3% 8% Generic Accommodation Travel org 26% Travel org/ Generic 61% Accommodation/ Generic Travel org/ Accommodation Travel org/ Accommodation/ Generic Sample: Bookers who used search during their online orientation All search queries are always matched in combination with a destination. Category Generic Accommodation Travel org Travel org/accommodation Accommodation/Generic Travel org/generic Travel org/accommodation/generic Example Vakantie Turkije Hotel Turkije Thomas Cook Turkije Thomas Cook Hotel Turkije Hotel vakantie Turkije Vakantie Turkije Thomas Cook Vakantie Turkije Thomas Cook hotel 17
Both in the beginning and the end of the customer journey, generic search terms are most prominent. First search Last search Generic Generic 50% Generic 58% Accommodation Accommodation/ generic Travel org Travel org/ generic Travel org/ accommodation Travel org/ accommodation/ generic Accommodation 26% Accommodation 25% Booking Travel organisation 24% Travel organisation 17% N= 113 Sample: Bookers, who used search during their online orientation. 18
The top 10 keywords contain only generic and accommodation keywords. Only a third of the bookers used vakantie in a search query. Vakantie 34.0% Last minute 15,2% Resort 13.1% Hotel 8.8% Villa 8.2% Eiland 7.7% Bus 6.4% Zee 3.3% Bezienswaardigheid 2.7% Temperatuur 2.1% N= 113 Sample: Bookers in M1 or M2, used search up to 6 months before booking (used black-out period of 21 days) All search queries are always matched in combination with a destination. The above ranking is determined by looking at whether these keywords appear at any point in a travel related search query 19
20 Appendix
The online research process of online bookers takes more often 1-5 weeks, while the offline bookers research for 6-10 weeks. Offline bookers Ø 92 days Online bookers Ø 83 days 33% 25% 27% 25% 21% 15% 15% 19% 11% 8% 1-5 weeks 6-10 weeks 11-15 weeks 16-20 weeks > 20 weeks N = 51 For 21% of the offline bookers the online research process takes 1 to 5 weeks. 27% researches more than 20 weeks before booking a holiday. 1-5 weeks 6-10 weeks 11-15 weeks 16-20 weeks >20 weeks N = 125 33% of the online bookers researches 1 to 5 weeks before booking a holiday. 25% of them needs more than 20 weeks to make a decision. Sample: Bookers, who used the internet during their orientation 21
Online bookers do on average more online actions than offline bookers. The pattern of actions is almost similar. Offline bookers Online bookers Ø 52 online actions Ø 59 online actions 37% 34% 24% 19% 10% 8% 10% 5% 7% 12% 11% 12% 7% 6% jan-14 15-29 30-44 45-59 60-74 75-89 90+ N = 51 Offline bookers do on average 52 actions during their online orientation process. jan-14 15-29 30-44 45-59 60-74 75-89 90+ N = 125 On average online bookers do 59 actions during their online research process. Sample: Bookers, who used the internet during their orientation 22
Research Set-up Internet usage (software) Offline behaviour (questionnaire) Software installed on panelists PC s. Continuous registration of: Websites (url s) visited Time spent on websites Google search queries Much more A list of relevant websites 1 and Google search queries 2 was defined together with Thomas Cook, Netsociety and Google. This relevant website and search queries data was extracted from the continuous registration database and constituted the database used for analyses. Queries were always matched in combination with one of the 16.000 relevant destinations. Wrong spelled keywords were added (e.g. vacantie), as these clearly indicate a relevant search. Panelists (with the software) were invited for an online questionnaire, twice. Three main questions: 1. Do you intend to book? Which travel organisations do you expect to consider? Which travel organisations will you prefer? 2. Did you book? Which travel organisations did you consider? Which travel organisations did you end up booking? 3. Did you visit a travel agency? And/or orientate offline in an other offline way i.e. brochures by mail etc? 23
Research Sample & Period Internet usage (software) Offline behaviour (questionnaire) Search and Website behaviour Funnel Survey-1 (M1) Survey-2 (M2) Measured 9-19 September 2011 12-27 December 2011 Analyzed period Sample size (response) Non-bookers or outside the area Bookers within Mediterranean area Offline bookers Online bookers December 2010 November 2011 8500+ 8353 221 59 148 (14 unknown) April September 2011 3500+ Analyzed period Sample size (response) See table left (Search and website behaviour) for subsamples. booked in April - August Intention to buy next 5 months N = 5752 N = 4397 (76%) booked in September November N = 4696 N = 4177 (89%) Sample composition Net response Survey-1 and Survey-2 All active respondents during Q2/Q3 2011 Sample composition All active* MEPpanelists All active* MEPpanelists that were in survey-1. Completed with those active MEPpanelists not in survey 1. *M1: Three conditions that define active: 1. Registration of online behavior at least once per month 2. For three months in the period April August 3. In any case active in April *M2: Three conditions that define active: 1. Registration of online behavior at least once per month 2. For two months in the period August - November 3. In any case active in October 24