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2 2010 Hotel Traveler s Road to Decision The Role of Digital on Hotel Travelers Google/OTX U.S., September 2010

3 Research Methodology Category Covered: Hotel Survey of 5,000 travelers An augment of 1,500 affluent personal travelers was also recruited Partnered with OTX; interviews conducted 4/21/10 5/07/10 Traveler Types Defined Personal Traveler has taken at least one trip for leisure in the past 6 months Business Traveler has taken at least three trips for business in the past 6 months Affluent Traveler has taken at least one trip for leisure in the past 6 months and has a household income of $200K+ 2

4 Key Findings The Internet continues to be the most widely used source for Hotel research and booking. Travelers are actively comparison shopping primarily through OTAs and Search Engines. Price (leisure traveler), Location (business traveler) and Previous Experience (affluent traveler) are deciding factors in picking a hotel. Business travelers are twice as likely as leisure travelers to stay at upscale properties. Best Western and Holiday Inn are popular among vacationers, while business and affluent travelers prefer Marriott and Hilton. 3

5 The Internet is the top source for hotel research Affluent (778) Business (601) Personal (1707) Internet Family, friends, or colleagues Magazines Informational brochures Travel agents 800 or toll-free number Books TV Newspapers Travel groups Radio Other Do not use any sources 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% (QH1) Which of the following sources, if any, do you typically use to decide which lodging accommodations to use when taking a personal/business trip? 4

6 Travelers are increasingly booking online 40% Personal (1707) 35% Business (601) 30% 25% 20% 15% 10% 5% 0% 6% more book online compared to Hotel brand site Online Travel Agent Call specific property directly Call hotel's 800 number Walk-in to property Call travel agent Company travel department Ensure your booking engine is accessible, and that it is easy for consumers to book their hotel stay. (QH2) How do you typically reserve lodging accommodations when traveling overnight for a personal/business trip? Other 5

7 Nearly 3 in 4 affluents book hotels online 50% 45% Affluent (778) 40% 35% 30% 25% 20% 15% 10% 5% 0% Hotel brand site Online Travel Agent Call specific property directly Call hotel's 800 number Walk-in to property Call travel agent Company travel department Other Ensure your booking engine is accessible, and that it is easy for consumers to book their hotel stay. (QH2) How do you typically reserve lodging accommodations when traveling overnight for a personal/business trip? 6

8 Personal travelers actively comparison shop 97% Some extent every time 72% Always / Frequently when researching their hotels. Strong representation on generic terms paired with a remarketing strategy ensures your brand is top-of-mind during the research process. (QH7) How often do you comparison shop online when choosing lodging accommodations for personal/business travel? 7

9 Affluent travelers actively comparison shop 98% Some extent every time 75% Always / Frequently when researching their hotels. Strong representation on generic terms paired with a remarketing strategy ensures your brand is top-of-mind during the research process. (QH7) How often do you comparison shop online when choosing lodging accommodations for personal/business travel? 8

10 Google 2 nd only to OTAs when comparing hotels 40% 35% Google 5% more likely to be used than brand sites Personal (1656) Business (570) Affluent (750) 30% 25% 20% 15% 10% 5% 0% OTA & Meta Google Hotel Brand Site AAA.com Yahoo! Travel Yahoo! Search (QH8) Which of the following websites do you use when comparison shopping for lodging accommodations for personal/business travel? 9

11 Leisure travelers choose hotels based on price Special offers and attractive price points in ads drive bookings. (QH3) How important are each of the following when choosing lodging accommodations for personal/business travel? 10

12 For business trips, location is a deciding factor Location Extensions on Google Maps highlight proximity to destinations. (QH3) How important are each of the following when choosing lodging accommodations for personal/business travel? 11

13 Affluents also consider past hotel experiences Remind them why they loved their last stay with compelling display ads. (QH3) How important are each of the following when choosing lodging accommodations for personal/business travel? 12

14 Business travelers stayed at upscale hotels twice as much as leisure travelers Personal (1707) Business (601) Affluent (778) Mid-scale hotel (e.g., Holiday Inn) Economy hotel (e.g., Best Western) Upscale hotel (e.g., Hilton) All-inclusive resort Bed & Breakfast Luxury hotel (e.g., Ritz Carlton) Condominium Guest house Boutique hotel Apartment hotel Other 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% (QH4) When traveling for personal/business reasons, in which of the following types of lodging establishments do you typically stay? 13

15 The hotel space is highly fragmented Hotel Personal Business Affluent Best Western 16% 24% 13% Holiday Inn 15% 20% - Marriott 13% 32% 27% Comfort Inn 13% 21% - Holiday Inn Express 12% 20% 10% Hilton 9% 27% 26% Hampton Inn 9% 19% 12% Courtyard 5% 17% 10% Embassy Suites 4% 17% 12% Hilton Garden Inn 4% 14% 11% Branding campaigns can help capture your desired consumer segment Hyatt 3% 14% 12% Sheraton 3% 11% 11% Days Inn 9% 10% - Choice Hotels 3% 10% - Westin 2% 10% 11% Ritz-Carlton % Top 3 per segment (QH5) In which of the following hotels have you stayed overnight in the past 6 months for personal/business reasons? 14

16 Data into Action: Marketing Opportunities Make it is convenient for consumers to reserve their hotel stay with a simple, easily accessible booking engine. Ensure your brand is top-of-mind while travelers comparison shop: be prepared with coverage on generic terms and a tailored remarketing strategy. Attract vacationers with creative that highlights special offers and attractive price points. Show business travelers that you are centrally located with a presence on Maps and Local content. Remind the affluent audience why they loved your property with compelling display ads. Stand out in the crowded hotel market with branding campaigns focused on capturing your desired consumer segment. 15

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