How is The New Always-Connected Travel Consumer changing how we sell?

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How is The New Always- Connected Travel Consumer changing how we sell? Tim Gunstone, Founder, EyeforTravel Ltd.

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Presentation by Tim Gunstone, Eye For Travel at Travel Marketing Master Class Event - 22nd July 2014

Transcript of How is The New Always-Connected Travel Consumer changing how we sell?

Page 1: How is The New Always-Connected Travel Consumer changing how we sell?

How is The New Always-Connected Travel Consumer

changing how we sell?

Tim Gunstone, Founder, EyeforTravel Ltd.

Page 2: How is The New Always-Connected Travel Consumer changing how we sell?

@eyefortravel

Page 3: How is The New Always-Connected Travel Consumer changing how we sell?

The 5 Stages of Travel

Dreaming

Researching

Sharing

Experiencing

Booking

Travel stages courtesy of Google Inc

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Mobile is powering bookings…

45.3% of travellers surveyed would make a last-minute booking on a tablet up to a week before travel, while

43.8% would do so on a mobile

Source: EyeforTravel’s Social Media & Mobile in Travel Distribution Report 2013

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Mobile Budgets Are Increasing

In 2013, 57.3% of travel brands surveyed planned to increase mobile spend…

…..versus 52.3% in 2012

#analyticseu

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Mobile leads to new customers

In the first 2 months after the launch of its iPad app, Jetsetter saw over 250,000 downloads and 7,000 new customers

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Savvy travel brands ARE making money from mobile

• In 2011 InterContinental Hotels Group (IHG) had seen revenues from mobile rise from $1 million to $10 million in just 12 months

• By the end of 2012 mobile revenues hit $330 million

• In 2013 it’s hitting $40million per month

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Where are travel marketers spending their mobile budgets?

#analyticseu

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@analyticseu

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Wide cultural variances

#analyticseu

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EyeforTravel Ltd.

Attitudes vary by country

50% of Dutch40% of French40% of Brits35% of Americans29% of Germans….

….would not book travel via a smartphone

#analyticseu

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Trend for last minute

• Google reported that 41% of last minute queries to airline websites were via mobile devices

• For hotels, 33% of last minute queries were via mobile devices

#analyticseu

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Germans still like to book early….

62% of Germans will book via a tablet a month or more in advance with just 7% booking on the day

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Whereas in France…

53% would book a month or more in advance and 10% would book on the day

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2 consumer comparisons

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German travel consumers

• Don’t like to book last minute (even via a mobile)

• Most likely to use a mobile device whilst on holiday compared to other nations

• 39% want to check-in via their mobile

• Slow loading times (33% significant impact) and negative reviews were strongest deterrents to booking (30%)

• 43% don’t share travel plans with friends/family via social media

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Dutch travel consumers

• Higher aversion to booking via a smartphone (50% - often citing security/payment as a concern) but are much less averse to booking via a tablet

• Prefer to use mobile for map function (43%) and reviews (44%)

• Hidden costs (56%) and slow load times (42%) biggest deterrents to booking

• They like to be able to compare deals (62% said this would mean more likely to book)

• Less social with 55% never share travel plans with friends via social media

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How much do consumers want to spend?

Of those willing to spend on mobile, the majority felt

comfortable purchasing up to a value of €600 via mobile

#analyticseu

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Mobile is not just about bookings….

…your customer is looking to interact with your brand via mobile

@anigba

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Several Mobile driven trends emerging

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Mobile is driving on-trip ancillary spend and Could be a a huge market

• Tours &Activities Euros 67 billion in USA and EU… • It’s highly fragmented. Often run by small

organisations. • No yield management no cross selling yet

Quoting Fernando Rodríguez Merino interview with EFT

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What’s driving/hindering On-trip spend

• Relevant Mobile friendly media and the old concierge

• Availability – the last battle ground in online travel – most T+A providers are happy to offer pre trip inventory but not on trip – This is changing

• Price – for age old reasons• Weather - for age old reasons@eyefortravel

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Mobile enabled On trip products for intermediaries

• After the hotel or flight has been booked on trip spend is a huge opportunity

• Travel intermediaries are succeeding with real time offers – either self built or using third party solutions – such as Check My Trip and Trip Case

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On trip mobile enabled products for travel suppliers

• Suppliers have the greatest opportunity as hotels and airlines own the customer when they are on trip

• Travel companies can either source inventory through Plug and play widgets that allow the travel supplier to be the owner of bigger part a traveller’s journey or are doing it themselves

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People who win in this space will be those that

• Understand their customer• Tailor message• Create the right partnerships

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Mobile driving inspiration

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Mobile-originated content is dominating the social media space. Short videos, photography and micro-blogging can add real value to your proposition

#analyticseu

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‘Social media and mobile are not two entities to be worked on separately. They are part of a multichannel consumer environment and must always be considered in terms of their impact across all channels’

Source: EyeforTravel’s Social Media & Mobile in Travel Distribution Report 2013

#analyticseu

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The industry is Integrating your mobile and social strategies!

Gatwick airport uses a Social, Local and Mobile approach

They have a presence across Facebook, Twitter, Foursquare, Soundcloud, and Instagram

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The result?• 50% of passenger enquiries at Gatwick are now via

their mobile site

• The size of their Facebook community has ballooned to 42,700 fans

• Over 100,000 check-ins at Foursquare locations, 40,000 offers claimed

• First airport worldwide on Instagram – 3,125 followers , 4,500+ images tagged #gatwick or #gatwick airport

#analyticseu

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Data is becoming social media’s key unique selling point for travel brands as the consumer information available is vast and highly useful…

@anigba

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Data is proving key to mobile

• Mobile limited sales space means you less opportunities to provide the right product

• Reactive products based on the browsers behaviour, location (and as many data sources as you have access to) can mean more mobile sales.

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To conclude:• Social Media, Mobile, Tablet and (shortly)

wearable technology are opening up a wide range of new and exciting opportunities to engage the new always connected customer

• It’s not all about bookings – but driving awareness, engagement and loyalty. Mobile and analytics lets you understand your customer more and so sell mor travel product

• European attitudes to privacy, security and technology vary so watch out. Could explain the US Eu discrepency.

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Thank You!

Tim GunstoneFounder and managing

DirectorEyeforTravel Ltd.

+44(0)207 375 [email protected]