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ONLINE SHOPPER INTELLIGENCE – UK

TRAVEL What You’ll Gain from this White Paper: This white paper aims to provide an overview of what’s happening in the UK’s online travel landscape based on research completed during Q1 2012. We hope to provide you with a clear sense of what is going on in the online travel landscape by examining key metrics – derived from Kantar Media Compete’s online behavioural data and Online Shopper Intelligence Survey of 1,500 UK respondents – to provide a snapshot of UK consumers’ behaviours and motivations in relation to the travel sector.

HARSH ECONOMIC CONDITIONS DO NOT DETER UK HOLIDAYMAKERS FROM TRAVELLING Kantar Media Compete’s Online Travel Intelligence Report reveals that despite the state of the economy, 4 out of 5 British adults had a holiday away from home in the last 12 months. Of this group, 57% travelled abroad on their short breaks or long holidays of five days or more. Popular foreign destinations included Western Europe, Central / Eastern Europe and the USA / Canada. Despite the double-dip recession, 90% of UK residents intend to travel away from home for leisure in the next 12 months. With the Jubilee almost upon us and the Olympics and Paralympics in just over two months, the number of people who intend to holiday in the UK is almost double that of last year – suggesting that local travel will be a popular option for many. The fact that London in particular will be a key destination is further supported by search data which shows that the capital as well as Manchester, Liverpool and Glasgow were the most searched cities – three of which will be hosting Olympic events. % British adults (Age 18+) Short break or long holiday away from home in the last 12 months

Top Search Destinations within the UK Search Term

82% 70%

Short break of 4 days or less away from home

61%

Long holiday of 5 days or more away from home Plan to take short break or long holiday away from home in next 12 months

90%

Average Clicks (Jan 12 – March 12)

London

21,621,257

Manchester

21,621,257

Liverpool

6,359,740

Glasgow

5,307,486

Source: Kantar Media Compete UK Clickstream Panel, Q1 2012

TOP TRAVEL DESTINATION

Past 12 Mths - Short Break

United Kingdom

86%

36%

62%

Next 12 Mths

Past 12 Mths - Long Holiday

Scandinavia/Nordic countries

2% 6%

17%

Western Europe (non-UK)

USA & Canada

5%

10% 12%

Central & Eastern Europe

Caribbean/West Indies

Mexico & Central America

5% 5%

Africa

2% 4%

South America

Asia Pacific/Far East

1% 3%

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3% 4%

Other Asia

3% 4%

Australia & New Zealand

Source: Kantar Media Compete UK Online Shopper Intelligence Survey (April 2012)

14% 19%

Indian Subcontinent

6% 5%

Middle East

35% 41%

2% 3%

1% 3%

2% 3%

20% OF BRITISH RESIDENTS TRAVELLED FOR LEISURE IN APRIL APRIL TRAVEL DESTINATIONS The majority of April travellers took their holiday within the UK, whilst 16% took advantage of the Easter and school holidays to

OTHER

travel within Western Europe. During the three months leading up WESTERN EUROPE (NON-UK)

to their trips, April travellers visited a range of online travel sites to help plan their breaks. Whether travelling abroad or staying in the

9%

16%

UK, online travel agencies (OTAs) were the most popular travelrelated sites during this time period. As can be expected, those

UNITED KINGDOM

that travelled to foreign destinations used OTA sites more heavily

75%

than those that stayed in the UK (72% vs. 50%) and were more likely to visit airline websites (56%) to research flights.

APRIL: MODE OF TRAVEL

ONLINE TRAVEL SITE VISITATION PRIOR TO APRIL TRAVEL

80% CAR

50% ONLINE TRAVEL AGENCIES (E.G. BOOKING.COM, EXPEDIA)

49%

72%

19% RAIL

27%

15%

AIRLINE SITES

56% 17% BUS

18%

26% HOTEL SITES

32%

3% PLANE

77% 18% TRAVEL EDITORIAL SITES (E.G. GUARDIAN/TRAVEL, YAHOO! TRAVEL)

2% FERRY

11%

0% CRUISE SHIP

25%

6%

TRAVEL GUIDE SITES (E.G. LONELY PLANET)

7%

UK

Source: Kantar Media Compete UK Online Shopper Intelligence Survey (April 2012)

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18%

OTHER

Source: Kantar Media Compete UK Clickstream Panel, Q1 2012

PATH TO TRAVEL BOOKING DIFFERS FOR SHORT BREAK AND LONG HOLIDAY TRAVEL Holidaymakers seek different experiences from various types of travel. Marketers should develop specific campaigns around both short and long breaks, as well as for more experiential travel based around events and one-of-a-kind experiences. The top reasons cited for leisure travel are to relax and unwind, as well as to visit family and friends or take in the sites at cultural and historical landmarks. However, travellers are more likely to use short breaks of four days or less to visit family and friends or attend specific events like cultural festivals or sports matches. Half of travellers take advantage of longer holidays to enjoy the beach and sunshine. Short break travel is rarely planned or booked over six months prior to the trip, with only half of bookings being completed at least one month before travel. 20% of short-break travellers waited until the last week to plan and book their most recent trip. When conducting research online, there typically is not one specific type of online destination that dominates the beginning of the research journey. One-quarter of short-break travellers began researching their most recent trip with an online search and 14% began with a hotel website. Over 60% of travel planning for their most recent short breaks resulted in a booking for car rentals and/or hotels. While 62% of the hotel bookings were made online, 87% of car rentals were made offline. Longer holidays require more advanced planning with 71% of most recent holidays being booked more than a month before the travel date. Compared to the short-break online planning process, longer holiday travel is more likely to start on tour operator and airline websites, although again, no specific online travel site type is the definitive starting point. For their most recent trips, over half of long-holidaymakers made a booking for a hotel, car rental and airline ticket. Three-quarters of those that made airline bookings and 56% of those that made hotel bookings completed these bookings online. Only 22% of Brits that rented cars booked these rentals on the internet.

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Characteristics of Short Break vs. Long Holiday Travel PURPOSE OF TRAVEL

RELAX & UNWIND

VISIT FAMILY AND/OR FRIENDS

57% 63%

44% 23%

SHORT BREAK

LONG HOLIDAY

SHORT BREAK

LONG HOLIDAY

NATURE/WILDLIFE

12% 48%

12% 11%

LONG HOLIDAY

SHORT BREAK

(music or cultural festival, sports match/game,exhibition)

29% 32% SHORT BREAK

17% 4%

LONG HOLIDAY

SHORT BREAK

ADVENTURE & OUTDOOR SPORT

BEACH & SUNSHINE

SHORT BREAK

FOR A SPECIFIC EVENT

SIGHTSEE CULTURAL & HISTORICAL LANDMARKS

LONG HOLIDAY

9%

OTHER

6%

SHORT BREAK

LONG HOLIDAY

4%

LONG HOLIDAY

2%

SHORT BREAK

LONG HOLIDAY

Characteristics of Most Recent Short Break vs. Long Holiday Travel AMOUNT OF TIME BEGAN RESEARCH BEFORE MOST RECENT TRIP

AMOUNT OF TIME MADE BOOKING BEFORE MOST RECENT TRIP

SHORT BREAK LONG HOLIDAY

14% 33% 36% 12% 5%

6% 23% 34% 22% 15%

SHORT BREAK LONG HOLIDAY

One week before 2-4 weeks before 2-3 months before 4-6 months before More than 6 months before

TOP STARTING POINT FOR RESEARCHING MOST RECENT TRIP ONLINE SHORT BREAK LONG HOLIDAY

Search engines

(eg. Google, Bing)

26%

21%

57%

4%

14%

21%

16%

8%

4%

12%

51%

8%

11%

14%

(eg. British Airways, EasyJet)

Train websites

(eg. Eurostar, National Rail)

Online travel agencies

5%

8%

Travel review sites

7%

6%

(eg. Expedia, Opodo)

(eg. TripAdvisor, VirtualTourist)

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SHORT BREAK LONG HOLIDAY

61%

Hotels/Hostels websites

Airline websites

SHORT BREAK LONG HOLIDAY

3%

17%

(eg. Hilton, Marriot, Best Western, YHA)

% OF BOOKINGS MADE ONLINE

56%

5%

7% 21% 39% 20% 12%

TYPES OF BOOKINGS FOR MOST RECENT TRIP

69%

Tour operator websites

(eg.Thomson, Thomas Cook, Evans)

19% 34% 33% 10% 4%

Airline tickets

Rail tickets

Hotel

Bus tickets

Car rental

87%

74%

73%

64%

62%

56%

33%

35%

13%

22%

LOW-COST AIRLINE TICKET BOOKINGS AND FLIGHTS Across all transport modes, airline tickets were booked the most online, with over three-quarters of respondents stating that they bought their most recent flights online. Nearly two-thirds of online airline ticket bookers completed their purchase directly on an airline website – double the amount that purchased on an OTA site.

Method of Booking Prior to Most Recent Trip Airline

Rail

Bus

Car rental

Online

77%

70%

34%

16%

At the ticket office

0%

18%

14%

1%

High street travel agent

12%

2%

7%

1%

By phone

7%

4%

6%

7%

Other

1%

1%

30%

2%

Did not make the booking myself

2%

1%

3%

7%

Did not require an advance booking

1%

5%

1%

65%

METHOD OF ONLINE AIRLINE TICKET BOOKING ONLINE TRAVEL AGENCY

31%

OTHER

4%

AIRLINE WEBSITE

65%

Source: Kantar Media Compete UK Online Shopper Intelligence Survey (April 2012)

AIRLINES VS ONLINE TRAVEL AGENCY (OTA) ATTRIBUTES

This is most likely due to the fact that airlines outperformed OTAs on nearly every service criteria including speed, price competitiveness, accuracy and ease of booking.

AIRLINE BETTER SPEED

unique visitors than established scheduled carriers such as British Airways and Virgin Atlantic. This demonstrates the UK travelling public’s appetite for cheap, low-cost air travel. British Airways’ website was especially popular for people who took both domestic and international flights. Low-cost airlines Easyjet, Flybe and Ryan Air’s sites were prominent for those who took a domestic break.

51%

11%

PRICE/COMPETITIVENESS

49%

14%

EXPERIENCED TRAVEL

47%

10%

PRICE ACCURACY

Easyjet is the UK’s leading airline website. It attracts more

OTA BETTER

44%

11%

EASE OF BOOKING

43%

13%

SELECTION/CHOICE

41%

16%

ACCURACY OF INFORMATION

37%

13%

EASE OF MAKING CHANGES

36%

14%

29% 26%

FIRST-TIME TRAVEL

Source: Kantar Media Compete UK Online Shopper Intelligence Survey (April 2012)

REACH OF AIRLINE SITES 49%

EASYJET 31%

BRITISH AIRWAYS

As for the Online Travel Agencies, Booking.com and Expedia attract the most unique visitors. These two sites are frequented by those that book their flights via airline and OTA sites – indicating their popularity and brand recognition across the different segments. However, FirstChoice,ThomasCook and Thomson are also popular among OTA-site bookers. Long-holidaymakers make regular use of Expedia, ThomasCook and Jet2 whilst those that book short international breaks spend more time on Lastminute. com. This falls in line with the high proportion of short-break travellers that make bookings shortly before their holidays.

RYANAIR

25%

FLYBE

19%

VIRGIN

19%

BMI KLM THOMASCOOK EMIRATES

16% 11% 9% 8%

Source: Kantar Media Compete UK Clickstream Panel, Q1 2012

REACH OF ONLINE TRAVEL AGENCIES (OTA) 55%

BOOKING.COM 42%

EXPEDIA

39%

LASTMINUTE 32%

THOMSON

27%

THOMASCOOK

21%

HOTELS.COM FIRSTCHOICE

21% 20%

TRAVELREPUBLIC JET2

9%

Source: Kantar Media Compete UK Clickstream Panel, Q1 2012

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HOTELS & TRAVEL REVIEWS Almost 60% of respondents booked a hotel for their most recent trip – with the largest proportion of them booking on a hotel website (28%), followed by an OTA (17%). Consumers prefer to book on hotel sites over OTAs because of their speed, ease of booking & price accuracy.

METHOD OF HOTEL BOOKINGS

HOTEL SITES VS. OTA ATTRIBUTES 46%

11%

45%

Hotel Site Better

45% 42%

28%

14% 15%

42%

42%

41%

OTA Better

38%

17%

30%

15% Hotel website (eg. Hilton, Marriot, Best Western) Online travel agent (eg. Expedia, Opodo, Ebookers) On the phone

19%

18% 12%

12%

10%

12%

11%

22%

12%

Other Hotels aggregator (eg. Booking.com, Hotels.com) High street travel agent (eg. First Choice, Trailfinders)

Speed

Price Price competitiveness accuracy

Ease of Ease of Accuracy of Experienced booking making changes information travel

Selection/ choice

First-time travel

Source: Kantar Media Compete UK Online Shopper Intelligence Survey (April 2012)

Among hotel websites, Travel Lodge and Premier Inn receive the highest amount of unique visitors to their sites. Review and planning sites are used particularly for hotel bookings. Almost 4 out of 5 respondents claimed that reviews on travel planning sites and hotel brand sites influence their booking decisions. Site data on TripAdvisor. co.uk confirms this, with consumers accessing the site’s hotel reviews section most. Hotel companies should ensure full transparency – offering reviews on their own brand pages and encouraging customers to provide feedback and positive reviews on both their sites and the leading review and planning sites. REACH OF HOTEL SITES

TRIP ADVISOR’S TOP REVIEWS

53%

Travelodge

800,000

20%

Holiday Inn

UVs

52%

Premier Inn

19%

Centreparcs

Hilton

10%

Marriot

10% Hotels Restaurants Best Flights of the Year

Source: Kantar Media Compete UK Clickstream Panel, Q1 2012

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Holiday Rentals

Holiday Ideas

Travel Forum

LEARN MORE For more information about Kantar Media Compete’s role in advancing the marketing effectiveness of online retailers, please contact: Jeremy Radcliffe Country Manager – UK 020 7656 5538 [email protected]

www.kantarmedia.compete.com

@competeuk