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