2011gdsadvertisingstudytravelclick 13265899836091-phpapp02-120114193149-phpapp02

2011 Global Travel Agent

GDS Media Research Study

Prepared for

December 14, 2011

2011 Global Travel Agent GDS Study

Agenda

Overview

• Objectives

• Methodology

• Travel Agent and Agency Summary

Detailed Findings

• GDS Channel: Performance and Usage

• Economic Conditions Impacting Agent Behavior

• Influencing Agent and Traveler Behavior

• Pricing and Rate Usage

• GDS Advertising Impact

• Questions and Answers

1


Objectives

The primary purpose of this market research study is to measure

travel agent awareness of specific GDS media… promotional

messages. Secondary objectives focus on…

• Evaluating the frequency with which travel agents use GDS

marketing tools.

• Determining how GDS media is used in conjunction with other

materials and information sources available to travel agents.

• Developing a profile of the travel agents and agencies participating

in the survey.

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Methodology

• TravelClick provided Phoenix Marketing International

(PMI) with a list of global travel agents that subscribe

to one of the four major GDS systems.

• Travel agents from the twenty-five countries listed

(and the United States) responded to the survey.

• An incentive of a $5 Amazon.com gift certificate was

offered to each respondent participating in the study.

In addition, one respondent was randomly chosen

and awarded a $500 Amazon gift certificate.

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Algeria

Australia

Bangladesh

Belarus

Brazil

Canada

Denmark

France

Germany

Hungary

India

Italy

Kenya

Mexico

Portugal

South Africa

Spain

Sweden

Switzerland

Thailand

Trinidad & Tobago

Tunisia

Ukraine

United Arab Emirates

United Kingdom


Methodology

A total of 495 online surveys representing the four GDS

companies were completed as shown below…

The data in this report has been weighted to reflect the distribution of Amadeus, Galileo, Sabre and Worldspan Global

Distribution Systems. The findings that you will see on the following pages are among Total Travel Agents, Travel Agents

in the Americas, EMEA and Asia/Pacific regions.

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Americas EMEA Asia/Pacific Total Travel Agents

Amadeus 39 38 11 88

Galileo 72 67 70 209

Sabre 96 15 0 111

Worldspan 74 10 3 87

281 130 84 495

Americas EMEA Asia/Pacific Overall

Number Travel

Agent Interviews 281 130 84 495 Total

Statistical Accuracy +4.9 points +7.2 points +9.0 points +3.7 points

Confidence Level 90% 90% 90% 90%


Americas EMEA Asia/Pacific

Number Full-time Travel

Agents Employed 6.6 8.2 14.5

Number GDS Terminals 7.5 7.1 9.3

Is most likely to be an

independently owned agency 71% 59% 44%

Average number of years

as a travel agent 23 16 13

Normally work at the

agency site 72% 86% 88%

Travel Agent Summary

The typical travel agency...

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Americas EMEA Asia/Pacific

Percent

Business/

Leisure

Top-three

Destinations

by Sales

Volume

Average

Sales

Volume

$3.2MM $3.1MM $2.2MM

Travel Agency Summary

The typical travel agency has the following mix of business…

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Business 40%

Leisure 60%

15%

19%

44%

Canada/Mexico

Europe

USA

Business 46% Leisure

54%

15%

16%

38%

USA

A/P/Australia

Europe

Business 29%

Leisure 71%

13%

19%

47%

USA

Europe

A/P/Australia


The GDS Channel Performance and Usage

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20

26

30

35

40

44

49 47 47 46

49 51

53 55

53

46 49

41

50

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD

2011 YE Est

GDS | Historical Performance

Hotel Bookings (in millions)

8

Source: TravelClick eMonitor, Q3 2011.


$2.5

$2.3

US

(In

Bill

ion

s)

$376

$133

$176

$154

$219

$68

$103 $82

$43 $10

$321

$116

$158

$130

$162

$57

$83 $64

$37 $9

UK Germany Canada France Australia Spain Italy China India Greece

(In

Mill

ion

s)

2011 Q3 2010 Q3

GDS | Performance by Country

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Source: TravelClick eMonitor, Q3 2011.


Reservation Channel Usage in Past Two Years Among Travel Agents

GDS Platforms

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Q. Compared to two years ago, would you say that you are using the following reservations channels more, about the same, or less?

Compared to two years ago, 85% of global travel agencies said that they

were using their GDS platform more often or same than in the past.

35% 27%

53% 42%

49% 55%

35% 47%

16% 18% 11% 12%

0%

20%

40%

60%

80%

100%

Total Agencies Americas EMEA Asia/Pacific

Use More Same Use Less


Reservation Channel Usage in Past Two Years Among Travel Agents

GDS Shopping Displays

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Q. Compared to two years ago, would you say that you are using the following reservations channels more, about the same, or less?

85% of global travel agencies stated they were using the GDS Shopping

Displays more often or same than in the past.

27% 25% 28% 32%

48% 54%

36% 35%

26% 20%

36% 33%

0%

20%

40%

60%

80%

100%


Use More Same Use Less


Economic Conditions Impacting Agent Behavior

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Frequency of Booking Lower Category Hotels Due to Client Requests

Based on Economic Conditions Around the World

13

Q. Would you say you are doing each of the following more often, less often or about the same?

41% 38% 47%

41%

37% 43% 24% 37%

22% 19% 30%

22%

0%

20%

40%

60%

80%

100%


More Often About the Same Less Often


54% 58%

46% 48%

35% 35%

33% 40%

11% 7%

21% 12%

0%

20%

40%

60%

80%

100%



Frequency of Influencing Clients Hotel Selection In Search of a Deal Regardless of Whether-or-Not a Negotiated Rate Exists for Client Based on Economic Conditions Around the World

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Frequency of Offering BAR Rates or Promotional Rates To Customers Who Have Negotiated Rates at the Time of Booking Based on Economic Conditions Around the World

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28% 26% 34%

21%

49% 53% 41%

40%

24% 21% 25%

40%

0%

20%

40%

60%

80%

100%




Influencing Traveler and Agent Behavior

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44% 44% 45% 40%

34% 33% 36% 43%

22% 23% 19% 17%

0%

20%

40%

60%

80%

100%


The client relies solely on your advice

Specifies a specific rate / price and allows you to help guide them through which of those properties to choose

Specifies a specific hotel regardless of rate

Percent of Time Client / Travel Agent Select / Recommend Hotel

When Booking for 1-3 Nights

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Q. When booking a hotel for 1 - 3 nights, what percentage of the time would you say the client…?

Overall agents influence the traveler’s selection of a hotel 78% of the time


43% 44% 44% 39%

34% 33% 35% 42%

22% 23% 21% 20%

0%

20%

40%

60%

80%

100%


The client relies solely on your advice

Specifies a specific rate / price and allows you to help guide them through which of those properties to choose

Specifies a specific hotel regardless of rate

Percent of Time Client / Travel Agent Select / Recommend Hotel

When Booking for 4+ Nights

18

Q. When booking a hotel for 4 nights or more, what percentage of the time would you say the client…?

Overall agents influence the traveler’s selection of a hotel 77% of the time


68% 73%

59% 48%


Factors Influencing Decision to Act on a Promotional Message

Among Those Aware of GDS Promo Messages

Amenities and Offers Gearing Toward the Traveler

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Q. What factors influence your decision to act on a promotional message.

Two-thirds (68%) of global travel agents indicated that amenities and offers geared

toward the traveler influence their decision to act on a promotional message.


51% 48% 56%

68%


Factors Influencing Decision to Act on a Promotional Message


Offers Gearing Toward the Travel Agent

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Q. What factors influence your decision to act on a promotional message.

Half (51%) of global travel agents stated that offers geared toward travel agents

influenced their decision to act on a promotional message.


Creating Value in the GDS

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Top Travel Agent

Incentives

Travel Agent Value

Recommendations

Top Hotelier Value

Drivers

Agent Rewards Points/Agent Loyalty Programs 69%

Increased Commission (for you personally) 55%

Free Night Stay 52%

Free Breakfast/Meals 83%

Free Internet 71%

Free Upgrade 68%

Free Night Stay 54%

Star Rating/Consumer Review Rating 46%

Free Internet 66%

New Televisions 42%

iPod Docking Stations 20%


Pricing and Rate Usage

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5% 4% 4%

14% 11% 15%

81% 85% 81%

0%

20%

40%

60%

80%

100%

2011 Survey 2009 Survey 2007 Survey

Not at All/Not Very Somewhat Very

Importance of GDS Offering Rate Parity

23

Q. How important is it to you to know that the GDS can offer rate parity (Very important, somewhat important, not very important, not at all important)?

Historical survey data shows that travel agents across the globe continue to

be virtually unanimous in their belief that GDS systems should offer rate parity.

95% 96% 96%


56% 60%

53%

2011 Survey 2009 Survey 2007 Survey

Percent of Time Offer Clients a Lower Priced Room When Looking to Book a Corporate Negotiated Rate

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Q. When looking to book a corporate negotiated rate hotel, what % of times do you offer clients a lower priced room when you find an alternative hotel

priced lower than a negotiated corporate rate hotel?

On average, over 56% of the time, travel agents will offer their clients a lower

priced room even when booking a corporate negotiated rate.


GDS Advertising: Awareness & Impact

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69% 75%

57% 60%


Awareness of GDS Promotional Messages

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Q. When researching air, hotel or car availability for your clients, do you recall seeing a promotional message at the top of the screen known as

Text Banners, Headlines, Value Alerts?

Seven-out-of-ten global travel agents (69%) are aware of the GDS promotional

messages.



47% (nearly half) made a North American booking in the past three

months as a result of a promotional message.

44% made a Non-North American booking in the past three months

as a result of a promotional message.

69% of global travel agencies are likely to book a hotel that is shown

in a promotional message during a query of air travel research.

66% request additional information about a specific promotion by

looking at the screen referenced in the promotion.

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57% 52%

71% 67%


Promotional Messages Steer Travel Agents to

Book Negotiated Rate of Hotel in Promo Message when Searching for Hotel Negotiated Rates


28

Q. When searching for negotiated rates in a hotel availability list and you see a promotional message for a hotel, does that promotional message

steer you to book the negotiated rate of the hotel in the promo message?

57% of global agencies said YES promotional messages steer them to book that

hotel’s negotiated rate.


9% 7% 17%

5%

83% 88% 71%

77%

8% 5% 11%

17%

0%

20%

40%

60%

80%

100%


Promotional Message Shown at the Bottom or Top of the Screen

Best Available Rate Offered by the Hotel Even if its Not a Negotiated Rate

Only Book a Hotel that has the Negotiated Rate

Option that Best Prompts Booking of Hotel When Researching Hotel for Negotiated Rates Among Those Aware of GDS Promo Messages

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Q. When researching hotel for negotiated rates, which of the following best prompts you to book a hotel?

83% of global travel agencies feel that showing the best available rate offered by the hotel even is it not a negotiated rate is the best way to get them to book a hotel while they are researching a hotel.


Details in Display Messages that Lead to Making a Hotel Booking

Percent Saying “Most Important”


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Q. What details in a GDS promotional message help lead you to making a hotel booking when you first see the ad?

45% Ensure Promotion Shows a Rate that I Can

Actually Book for the Dates Searching for

17% Ensure Promotion Only Shows the Destination

Searching For

11% Ensure Promotion Shows the Hotel’s GDS

Property ID

13% Ensure Promotion Includes Information on

Amenities, Travel Agent Incentives and Other

Add-ons in Addition to Price

13% Ensure Promotion Offers a Value Greater

the Hotels Standard Available Rates –

Be Competitive

Total Agencies


Questions and Answers

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If you are interested in learning more about purchasing

GDS Media Advertising for your property, please contact

your local Director of Sales.

If you do not have a Director of Sales, please contact a

TravelClick representative at [email protected].

32

Thank You.

2011gdsadvertisingstudytravelclick 13265899836091-phpapp02-120114193149-phpapp02

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