The Role of Online in Travel Purchases. Hungary

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1 The Role of Online in Travel Purchases Hungary

2 Methodology Vertical Deep Dive Travel Hungary Target group: Internet user in Hungary, 18 years and older Sample: n=1,000 Internet users Methodology: Online Questionnaire Weighting based on a representative telephone survey (please see next slide) Period of analysis: Fieldwork: December 9 th December 22 nd 2011 Final Report: January 18 th 2012 Research company: TNS Infratest 2

3 Methodology SRS Telephone Survey Target group: General population in Hungary, 18 years and older Sample: n=481 Internet users Methodology: CATI (Computer Aided Telephone Interviews) Collection of figures about the local internet penetration Collection of representative figures for the online population in terms of: age, gender, education, frequency of online access, frequency of online purchase, usage of YouTube Period of fieldwork: February 15 th April 28 th, 2010 Research company: TNS Infratest 3

4 Weighting of the data Online surveys are usually conducted via online access panels. This is a widely accepted method and TNS Germany has sound experience with online surveys in every respect. We ve learned that respondents in online surveys can be seen as lead users, reflecting media- and internet usage very well. However, respondents on panels tend to use the internet quite intensively and are usually media inclined in general and internet inclined in particular. Therefore we applied a weighting process based on our representative offline telephone survey in order to minimize this effect. Having applied the weighting procedure our survey is representative for the Hungarian online population aged 18+ which reflects 48% of the Hungarian population aged 18+ 4

5 Analysis of the data Our study reflects 48% of the Hungarian population aged 18+ or 100% of the Hungarian online population aged 18+. SRS Telephone Survey VDD Travel Hungary Hungarian Population aged 18+ Hungarian Onliners aged 18+ Hungarian Onliners aged 18+ 5

6 Summary % of Hungarian onliners conducted a trip in the past 12 months. Most trips are rather short (up to 5 days.) When going on a trip Hungarian onliners typically stay domestic: the vast majority spend their short or holiday trips within Hungary. Accordingly the most popular travel product are accommodation bookings. The internet plays a major role in the pre-purchase research process: in every research phase (finding inspiration finding destinations finding offers making decisions) 2/3 of the travellers who made a booking informed themselves online. Search engines are a key navigator when conducting a travel research: they are the most 4 frequently considered online source in the actual research phases, 2 out of 3 online researchers use them for finding websites on travel products and there is wide agreement on their importance for identifying relevant content. The internet is an established booking channel for travel products. However, its spread differs 5 per product: Online bookings are clearly first choice for booking flights and strong as well for accommodation bookings. ROPO-effects are visible for travel package bookings as well as bus and train travel bookings. 6

7 General travel behaviour 7 7

8 Travel frequency past 12 months Somewhat retentive travel behaviour among Hungarian onliners: the majority did not spend a longer holiday trip in the past 12 months possibly due to economic crisis Travel frequency past 12 months All respondents 40% were both on at least one short trip and at least one holiday trip Short trips (up to 5 days) 24% 24% 15% 17% 80% Holiday trips (more than 5 days) 35% 6% 2% 44% Once Two times Three times Four times and more Q4: How often have you been on short trips (overall length of up to 5 days) and/ or on holiday trips (overall length of more than 5 days) in the past 12 months for private reasons? Base (weighted): All respondents n=1,000; answer categories Not at all not shown 8

9 Destinations Domestic destinations are clearly most popular regardless of trip type about one third of the holiday trip travellers went abroad Destinations visited on trips Travellers of the past 12 months per trip type Short trip Holiday trip Hungary 86% Hungary 66% Western Europe 7% Southern Europe 10% Southern Europe 3% Outside Europe 9% Eastern Europe 3% Western Europe 8% Northern Europe 0% Eastern Europe 7% Outside Europe 0% Northern Europe Q5: Which of the following destinations have you travelled to? Base (weighted): Travellers of the past 12 months: short trip n=796, holiday trip n=443 9

10 Type of short trip Top 10 Apart from relaxation making visits at relatives or friends is the prevailing motive for going on a short trip For which purposes did you conduct short trips? Short trip travellers Relaxation 40% Private trip (other reasons) 18% Visiting family & friends 37% Holiday with children 14% Fun & entertainment 32% Sport & activity 14% City break 28% Culture 10% Sun & beach 25% Luxury Q6: Which of the following best describes the purpose of your last short trip? Base (weighted): Short trip travellers of the past 12 months n=796 10

11 Type of holiday holiday trip Top 10 Holiday trip travellers typically aspire relaxation as well as classic sun and beach vacations For which purposes did you conduct holiday trips? Holiday trip travellers Relaxation 42% Visiting family & friends 18% Sun & beach 37% Sport & activity 1 Fun & entertainment 29% Culture 1 Holiday with children 28% Private trip (other reasons) 7% City break 2 Skiing holiday 4% Q6: Which of the following best describes the purpose of your last holiday trip? Base (weighted): Holiday trip travellers of the past 12 months n=443 11

12 Type of accommodation Short trips are often spend privately at the home of friends or relatives whereas for holiday trips commercial lodging prevails B&B or rented accommodation ahead of hotels Type of accommodation Travellers of the past 12 months per trip type Short trip Holiday trip Home of friends/ relatives 34% B&B/ guesthouse 23% B&B/ guesthouse 24% Rented apartment/ holiday home 19% Hotel 13% Home of friends/ relatives 18% Rented apartment/ holiday home 1 Hotel 15% Camping/ caravan 8% Camping/ caravan 8% Own apartment/ holiday home 3% Own apartment/ holiday home 6% Club Farm 3% Farm Club 0% Q8: Which type of accommodation did you use on your latest short and / or holiday trip? Base (weighted): Travellers of the past 12 months: short trip n=796, holiday trip n=443; answer categories Other and Don t know not shown 12

13 Means of transport short trip On short trips the own car is clearly the prevailing means of transport followed by train and bus travel - well in line with the preference for domestic destinations Means of transport short trip Short trip travellers Own car 62% Motorbike / moped 2% Rail / train 23% Ferry 2% Bus / coach 2 Cruise ship 2% Rental car 3% Motor home Aeroplane 3% Car with caravan Q7: Which means of transport did you use for your latest short trip? Base (weighted): Short trip travellers n=796; answer categories Don t know / Other not shown 13

14 Means of transport holiday trip Going by car, train or bus are the most frequently chosen means of transport for holiday trips 1 out of 10 holiday trip travellers went by aeroplane Means of transport holiday trip Holiday trip travellers Own car 6 Cruise ship 5% Rail / train 20% Rental car 3% Bus / coach 15% Motor home 2% Aeroplane 9% Car with caravan Ferry 7% Motorbike / moped Q7: Which means of transport did you use for your latest holiday trip? Base (weighted): Holiday trip travellers n=443; answer categories Don t know / Other not shown 14

15 Trip organization Obviously the share of bookers is higher for holiday trips (75%) than for short trips (54%) - accommodationonly is the top booking option (in line with staying domestic and going by car) Trip organization Travellers of the past 12 months per trip type Short trip Holiday trip Only accommodation 29% Only accommodation 33% Travel package 15% Travel package 23% Accommodation + transportation Only transportation 5% 4% 3% with the same provider Accommodation + transportation Only transportation 10% 8% 4% with the same provider No booking in advance 38% No booking in advance 17% Don't know / can't remember 8% Don't know / can't remember 8% Q10: Which of the following options applies to your latest short and/ or holiday trip? Base (weighted): Travellers of the past 12 months: short trip n=796; holiday trip n=443 15

16 Annual travel budget per household The majority has a comparably low annual travel budget every second onliner spends less than 60,000 HUF on travelling per year Annual travel budget per household All respondents 1 More than HUF HUF HUF Less than HUF Don t know 13% 2 34% Average budget: Ø 123,998 HUF Median budget: 60,000 HUF 20% Q9: How much money do you in your household usually spend per year on travelling for private purpose? Base (weighted): All respondents n=1,000 16

17 Booking behaviour 17 17

18 Booking channels - overview Online is an established booking channel for travel products with air travel and accommodation being most likely to have been booked online Which of the following methods did you use for your booking? Bookers per travel product and trip type Short trip Holiday trip Accommodation bookers Online Offline 46% 46% 37% 47% Train travel bookers Online Offline 27% 47% 27%!* 63%!* Travel package bookers Online Offline 26% 56% 2 77% Bus travel bookers Online Offline 17% 5 20%!* 60%!* Air travel bookers Online Offline 12%!!* 87%!!* 9!!* 6%!!*!* low incidence n<70!!* very low incidence n<30 Q11/ Q12: Which of the following methods did you use to book your latest short/ holiday trip? Base (weighted): Short trip travellers of the past 12 months who booked an accommodation n=274 or air travel n=11 or travel package n=122 or bus travel n=159 or train travel n=158; Holiday trip travellers of the past 12 months who booked an accommodation n=192 or air travel n=18 or travel package n=104 or bus travel n=56 or train travel n=66 18

19 Booking channels - accommodation Apart from direct phone booking with the hotel, the internet is clearly the strongest booking channel for accommodation online bookings at the hotel ahead of bookings via aggregator sites Booking channels accommodation Accommodation bookers Short trip Holiday trip Online total 46% 37% Via the internet directly with the hotel 24% 18% Online booking Via the internet directly through a hotel portal 16% 12% Via the internet with a travel agency 6% 7% Via the internet with a tour operator Offline total 46% 47% By phone directly with the hotel 30% 30% Offline booking Personal visit at a travel agency By phone with a travel agent 8% 5% 9% 5% By phone with the tour operator 3% Personal visit at a tour operator 3% Q11/ Q12: Which of the following methods did you use to book your latest short/ holiday trip? Base (weighted): Travellers of the past 12 months who booked accommodation for a short trip n=274 or a holiday trip n=192 19

20 Booking channels air travel Among the (very few) air travel bookers the internet is clearly the preferred booking channel: 90% of all air travel bookings were placed online Booking channels air travel Air travel bookers Short trip!!* Holiday trip!!* Online total 87% 9 Online booking Via the internet directly with the airline Via the internet with a travel agency 3% 84% 36% 44% Via the internet with a tour operator 0% 1 Offline total 12% 6% Personal visit at a travel agency 4% Personal visit at a tour operator 3% Offline booking Personal visit at the airline 2% By phone with the tour operator 2% By phone directly with the airline 2% By phone with a travel agent Q11/ Q12: Which of the following methods did you use to book your latest short/ holiday trip? Base (weighted): Travellers of the past 12 months who booked air travel for a short trip n=11 or a holiday trip n=18!!* very low incidence n<30 20

21 Booking channels train travel Train travel bookings are typically made directly with the train operator: personal visits and online bookings on the train operator site are the top booking channels Booking channels train travel Train travel bookers Short trip Holiday trip!* Online total 27% 27% Online booking Via the internet directly with the train operator Via the internet with a travel agency 17% 5% 25% Via the internet with a tour operator 5% 2% Offline total 47% 63% Offline booking Personal visit at the train operator By phone directly with the train operator Personal visit at a travel agency Personal visit at a tour operator By phone with a travel agent By phone with the tour operator Q11/ Q12: Which of the following methods did you use to book your latest short/ holiday trip? Base (weighted): Travellers of the past 12 months who booked train travel for a short trip n=158 or a holiday trip n=66 6% 6% 4% 29% 45% 12% 4% 2% 0%!* low incidence n<70 21

22 Booking channels bus travel Bus travel bookings for short trips are preferably made either personally at the bus operator or via a bus operator website for bus travel on holiday trips travel agencies and tour operators contribute as well Booking channels bus travel Bus travel bookers Short trip Holiday trip!* Online total 17% 20% Online booking Via the internet directly with the bus operator Via the internet with a travel agency 15% 2% 14% Via the internet with a tour operator 0% 5% Offline total 5 60% Offline booking Personal visit at the bus operator By phone directly with the bus operator By phone with the tour operator Personal visit at a tour operator Personal visit at a travel agency By phone with a travel agent Q11/ Q12: Which of the following methods did you use to book your latest short/ holiday trip? Base (weighted): Travellers of the past 12 months who booked bus travel for a short trip n=159 or a holiday trip n=56 8% 5% 3% 2% 0% 33% 2 3% 0% 10% 14% 12%!* low incidence n<70 22

23 Booking channels travel package Travel packages for holiday trips are mainly booked personally at tour operators or travel agencies for online bookings websites of travel agencies are preferred over tour operator sites Booking channels travel package Travel package bookers Short trip Holiday trip Online total 26% 2 Online booking Via the internet with a travel agency 22% 18% Via the internet with a tour operator 4% 3% Offline total 56% 77% Personal visit at a tour operator 2 33% Offline booking By phone with a travel agent 17% 8% Personal visit at a travel agency 10% 25% By phone with the tour operator 6% 1 Q11/ Q12: Which of the following methods did you use to book your latest short/ holiday trip? Base (weighted): Travellers of the past 12 months who booked a travel package for a short trip n=122 or a holiday trip n=104 23

24 Aggregated overview booking behaviour 84% of the Hungarian onliners were on a short / holiday trip in the past 12 months 65% of the onliners made a booking for their last short / holiday trip. 27% of the onliners made an online booking for their last short / holiday trip. 100% 84% 65% 27% Hungarian Onliners Travellers Bookings Online Bookings 77% of the travellers made a booking for their last short / holiday trip. 32% of the travellers made an online booking for their last short / holiday trip. 100% 77% 32% Travellers Bookings Online Bookings 42% of all short / holiday trip bookings (travel package, accommodation, air travel, train travel, bus travel) were placed on the internet. 100% Bookings 42% Online Bookings 24

25 Devices used for online booking Obviously stationary internet is still the top booking channel for travel products mobile bookings most likely for bus and train tickets Which devices did you use for your online booking? Travellers who booked online PC/laptop/ netbook at home/ at work Laptop/netbook on the go Mobile/ smartphone Tablet PC Travel package online bookers Accommodation online bookers Bus travel online bookers Train travel online bookers Air travel online bookers 72% 22% 5%!*!*!*!* 83% 16% 0% 52% 24% 23% 0%!*!*!*!* 53% 2 25% 0%!*!*!*!*!!*!!*!!*!!* 64% 35% 0%!* low incidence n<70!!* very low incidence n<30 Q13: Which of the following devices did you use in order to make your booking? Base (weighted): Travellers of the past 12 months who booked online for a short trip: accommodation n=177; air travel n=23; travel package n=45; bus travel n=31; train travel n=54; answer category Don t know not shown 25

26 Preferred method of payment Credit card payments are clearly preferred over pay pal or direct deposit overall bank transfer in advance is the most popular payment method Which is your preferred payment method for online bookings of travel products? Travellers who booked online Bank transfer in advance 47% 27% of all Hungarian onliners booked travel products via the internet in the past 12 months Online payment with credit card (i.e. master card, VISA) 33% Online payment via PayPal 6% Online payment with direct deposit 4% Q35: Which is your preferred method of payment when you book travel products on the internet? Base (weighted): Travellers who booked online n=270; answer category Don t know not shown 26

27 Likelihood of online repurchase High satisfaction with online booking channels across the board more than half of the online bookers are likely to re-book via this channel Likelihood of online repurchase Travellers who booked online Hotel / accommodation facility website (n=92) % Hotel portal (n=63)!* 39% 46% 85% Online travel agency or portal (n=75) 47% 29% 75% Tour operator website (n=21)!** 3 42% 73% Airline / train operator / bus operator website (n=51)!* 49% 12% 6 Q15: How likely is it that you ll book your next trip via this source as well? Base (weighted): Travellers of the past 12 months who booked online for a trip Very likely Somewhat likely!* low incidence n<70!** very low incidence n<30 27

28 Travel insurance Travel insurances are obviously more likely for longer trips: 40% of the holiday trip travellers contract a travel insurance and 10% do so online Did you contract a travel insurance? Travellers of the past 12 months Short trip Holiday trip Yes and I contracted online on a travel booking site on the website of an insurance company 7% 5% 2% 10% 5% 4% Yes and I contracted offline at a travel agency or tour operator at an insurance company 14% 9% 6% 12% 17% 30% I did not contract a travel insurance 79% 6 Q33: Did you contract a travel insurance for your latest short and or holiday trip and if so where did you contract the travel insurance? Base (weighted): Travellers of the past 12 months who booked a travel package for a short trip n=796 or a holiday trip n=443 28

29 Drivers for contracting travel insurances Convenience related aspects (time saving, getting all services from one source) are the main drivers for contracting a travel insurance online What are your reasons for contracting travel insurances on travel booking sites? Travellers who contracted a travel insurance online It s a gain of time, I don t have to search for offers 57% I prefer to receive all travel services from one source 27% Insurance offers on travel booking sites fit for the holidays I book 16% It s cheaper compared to contracting with an insurance company 6% Good experiences with travel insurances from booking sites 2% Q34: What are your reasons for contracting the travel insurance directly on a travel booking site? Base (weighted): Travel insurance contracted at booking site n=50 ; answer categories Other reasons / Don t know not shown 29

30 Participation online promotions 1 out of 4 Hungarian internet users have already participated in online sweepstakes or promotions travel related sweepstakes most popular Have you ever participated in travel sweepstakes online or did you ever use online promotions? All respondents 18% Yes, I ve already participated in travel related online sweepstakes (e.g. on facebook) No 72% Yes 28% 5% Yes, I ve already used coupons when booking travel products 5% Yes, I ve already used promocodes when booking travel products Q36: Have you ever participated in travel related online sweepstakes (e.g. on facebook) or did you ever use online promotions (e.g. promocodes, coupons) when booking travel products? Base (weighted): All respondents n=1,000; answer category Don t know not shown 30

31 Advance bookings for discounts Hungarian onliners are most likely to aspire discounts for early bookings in comparably high-priced product categories If offered a discount how many days in advance would you be willing to book? All respondents Trip start 30 days 60 days 90 days >90 days No interest in discounts Bus tickets 48% 9% 3% 7% 22% Train tickets 46% 10% 4% 5% 23% Accommodation 39% 17% 1 10% 15% Plane tickets 35% 13% 9% 10% 18% Travel package 35% 16% 7% 10% 19% Q37: What is the maximum time period you would accept for making your booking in advance of a trip in order to get a discount? Base (weighted): All respondents n=1,000; answer category Don t know not shown 31

32 Research behaviour 32 32

33 Path to purchase The internet plays a major role along the path to purchase on travel products and is the most frequently used source for getting inspired, for finding concrete travel offers and for supporting booking decisions How did you inform yourself prior to your trip booking? Travellers of the past 12 months who made a booking Finding inspiration Finding destinations Finding offers Decision support Online media sources (e. g. search engines, online travel agencies) 80% 66% 76% 7 Word-of-Mouth (e. g. consultancy with friends/at a travel agency) 77% 73% 65% 64% Offline media sources (e. g. TV, print, radio) 59% 43% 42% 34% Q16: Which of these did you use in order to find inspiration or ideas for your latest short and/or holiday trip? / Q17: W hich of these did you use in order to decide about the destination place for your latest short and/or holiday trip? / Q18: Which sources of information did you use in order to search for the concrete offers for your latest short and/or holiday trip? / Q19: Which sources of information did you use to help you make the final decision about the trip purchase? Base (weighted): Travellers of the past 12 months who made a booking n=652 Source: TNS Infratest 33

34 Path to purchase detailled view Apart from personal consultancy search engines are the most frequently considered source for finding travel inspiration, destinations and offers Finding inspiration Finding destinations Finding offers Decision support Personal consultancy with friends/family Search engines Websites of hotels/accommod. facilities Catalogues or travel guides Newspapers or magazines Websites of online travel agencies TV Websites of tour operators Social networks Google Maps 38% 33% 29% 22% 22% 19% 18% 13% 12% 7 27% 24% 20% 15% 13% 15% 1 8% 7% 64% 53% 33% 3 25% 15% 25% 1 15% 8% % 17% 12% 17% 1 10% 7% 7% 52% Consultancy at travel agency/tour oper. Google Earth 1 10% 12% 5% 19% 7% 20% 7% Relevant forums 9% 7% 9% 12% Radio Websites of transportation companies 8% 8% 4% 5% 8% 17% 7% 14% Blogs 6% 5% 10% 5% Travel newsletter 6% 2% 6% 5% Q16: Which of these did you use in order to find inspiration or ideas [ ]? / Q17: Which of these did you use in order to decide about the destination place [..]? / Q18: Which sources of information did you use in order to search for the concrete offers [..]? / Q19: Which sources of information did you use to help you make the final decision? Base (weighted): Travellers of the past 12 months who made a booking n=652 34

35 Path to purchase Online sources play a major role in the path to purchase for travel products: for 4 out of 5 travel products they are the most frequently considered information sources for finding offers and supporting purchase decisions. When it comes to the actual purchase the spread of online differs: Online bookings clearly first choice for booking flights and strong for accommodation. ROPO-effect (research online purchase offline) visible for travel packages, bus and train travel. Finding offers Decision support Purchase Short trips Holiday trips 78% 59% 45% 77% 56% 34% 46% 46% 37% 47% % 48% 26% 27% 47% 27% 63% 70% 46% 18% % 12% 87% 6% 9 62% 64% 43% 62% 69% 42% 26% 56% 2 77% 6 42% 18% 56% 32% 12% 17% 5 20% 60% Base: Bookers per travel product Base: Bookers per travel product Base: Bookers per travel product (short trip) Base: Bookers per travel product (holiday trip) Online media sources Word-of-Mouth Offline media sources Accommodation Air travel Travel package Bus travel Train travel 35

36 Time frame from research to booking Half of all short trips are booked within one week whereas the time span for booking a holiday trip is longer: 57% search for 1 week up to 3 months How long did you inform yourself before you made a booking? Travellers who booked a short / holiday trip Short trip Holiday trip 12% 1 day (direct booking) 5% 37% less than one week 23% 49% of the short trip bookers made their booking within one week 25% 10% 7% 2% between 1-2 weeks between 3-4 weeks between 1-3 months between 3-6 months more than 6 months 16% 20% 2 3% 0% 57% of the holiday trip bookers needed at least 1 week and up to 3 months for making their booking 6% Cannot remember 12% Q20: How long did you inform yourself before you booked the short and / or holiday trip? Base (weighted): Travellers who booked a short trip=796; holiday trip n=443 36

37 Numbers of used websites High information needs in order to prepare a trip regardless of trip length every second online researcher used 5 websites or more for research How many websites did you use for research prior to booking? Travellers of the last 12 months who researched online Short trip Holiday trip On average 6 websites were used to research a short trip 13% 19% 12% 1 website 2 websites 3 websites 12% 14% 9% On average 6 websites were used to research a holiday trip 9% 4 websites 8% 16% 5 websites 18% 47% websites 26% 57% 10% 11 and more websites 13% Q21: How many websites did you use within your research process prior to purchase? Base (weighted): Travellers who used online information sources for research: short trip n=693; holiday trip n=383 37

38 Gateway online research Already 1 out of 5 online researchers used their mobile or smartphone in order to search for information on travel products Which devices did you use in the research process? Travellers of the last 12 months who researched online PC/laptop at home Mobile/smartphone 79% 20% Laptop/netbook on the go Tablet PC 2 2% Q22: Which of the following devices did you use in the research process on your latest short and / or holiday trip? Base (weighted): Online researchers for short trip/ holiday trip n=727; answer categories Don t know not shown 38

39 Information trigger Search engines are a key navigator tool for those who use the internet in order to inform themselves about travel products How did you find the websites you used for searching product information? Travellers of the last 12 months who researched online Search engines 67% Typing in the website address directly in the browser 26% Click on the display advertisement 2 Links at other websites 20% Recommendations available at forums, social networks 12% I saw an online advertisement, but I didn t click on it 5% Q24: How did you find the websites you have used in the internet? Base (weighted): Travellers of the past 12 months who used online information sources n=727; answer category Don t know not shown 39

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