Methodology. Overall margin of error of +/-2.5%, at a 95% confidence interval. Survey took place mid to end of January 2016.

Transcription

1 2016 AHLA Convention & Tradeshow April 18, 2016

2 Methodology Surveyed 973 people about their leisure travel, 528 about their business travel and the whole sample (1,501) about opinions on current issues affecting travel in Canada. Overall margin of error of +/-2.5%, at a 95% confidence interval. Survey took place mid to end of January 2016.

3 Methodology Regional sample and margin of error: Atlantic 112 +/- 9.3 Quebec 365 +/- 5.1 Ontario 575 +/- 4.1 Prairies 250 +/- 6.2 BC + Territories 199 +/- 6.9

4 Travel Intentions: 2016 Projections

5 Leisure Travel Habits: 2015 vs Compared with the travel for leisure you did in 2015, would you say that you will be doing more, the same or less in Canada in 2016? More 13% 20% 25% 22% 22% 23% Same Less 15% 10% 11% 10% 12% 55% 59% 57% 61% 62% 59% 29% AB 2016 Can

6 Influencers for Less Leisure Travel Financial difficulties Cost of lodging Cost of dining out Energy costs Cost of air fare Job uncertainty 21% 29% 24% 29% 27% 45% 36% 28% 43% 39% 48% 45% 2016 AB

7 Influencers for More Leisure Travel Cheaper air fare 24% 26% Discount lodging 20% 29% Canadian $ Weekend pkg Draw for free weekend Luxury room at standard rate Free tickets 9% 8% 7% 5% 5% 3% 13% 10% 12% 18% 2016 AB

8 Business Travel in 2016 Less Same More 24% 14% 8% 11% 10% 14% 11% 15% 16% 19% 20% 24% 24% 22% 28% 26% 57% 61% 61% 57% 58% 58% 48% 50% AB

9 Influencers for Less Business Travel Cost of hotels 15% 21% Co in financial difficulty 9% 11% 16% 19% 32% Tele/video conference 14% 22% 21% 23% 30% Worried about economy 26% 22% AB Cost of air fare 24% 16% 20% 32% 34%

10 Influencers for Less Business Travel Travel Outside Cda & US 0% 4% 5% Budget cutbacks Retirement 8% 5% 9% 14% 11% 3% 7% AB Price gas/energy 10% 20% 15% 20% 18%

11 Influencers for More Business Travel Canadian $ 14% 33% Cost of air fare 10% 25% Price of gas Travel less to US Confidence in Cdn economy Company growth Job requirement Less video conferences 24% 22% 10% 19% 22% 12% 11% 11% 0% 10% 5% 7% AB 2016

12 Business: Has Tele/Video Conference Caused Cancellation of Travel? in last 3 months 8% 19% 18% 19% 18% 25% in last 6 months 10% 16% 16% 15% 22% 19% in last year 12% 19% 25% 25% 29% 27% AB

13 Economic Impacts on Business Travel What kind of influence have the following had on travelling less for business? (5= great deal of influence; 1=no influence at all) Air fare AB 33% 24% 16% 27% Air fare 23% 27% 12% 9% 28% Canadian Economy 42% 11% 13% 16% 18% Canadian Economy 25% 23% 21% 8% 23% U.S. Economy AB 53% 29% 5% 13% U.S. Economy 20% 25% 14% 8% 32% World Economy AB 53% 29% 10% 8% World Economy 18% 20% 20% 9% 32%

14 Travel Intentions: Number of Leisure Trips in or more 8% 16% 16% 12% % 46% 48% 59% 1 19% 34% 27% 28% AB DK 9% 4% 10% 10%

15 Leisure: Final Destination by Province/Region 34% 34% 31% 28% 28% 20% 21% 20% 20% 25% 11% 8% 10% 10% 9% 4% 5% 5% 5% 4% 19% 19% 20% 21% 15% 17% 17% 15% 14% 13% BC Alberta MB / SK Ontario Quebec Atlantic

16 Greatest Impact on More Travel Leisure Cheaper air fare Discount Accommodations Canadian dollar Business Discount Accommodations Cheaper air fare Luxury room at a standard rate

17 Summary: 2016 Projections Both leisure and business travel projected to be down in 2016 Financial difficulties and economic worries, particularly in AB Low Canadian dollar First time since survey was launched is this cited as an influence on both leisure and business travel Some leisure travelers who previously travelled to the United States may now vacation in Canada May result in less business travel outside Canada Video conferencing is down this year Canadian economy is having the most influence on business travel, particularly with Alberta travelers Leisure travel is down slightly in every province but Ontario and Atlantic region All travelers looking for cheaper air fair and discount accommodations

18 RATES

19 Leisure: Accommodation Type Travel Next Trip in % 30% 30% 28% 28% 27% 20% 21% 22% 19% 20% 18% 19% 18% 15% 15% 16% 16% 13% 13% 2% 4% 6% 4% 6% Luxury Upscale Mid Mkt w Rest. Mid Mkt w/o Rest. AB Economy

20 Leisure Accommodation Type - Travel Next Trip % 77% 76% 77% 78% 8% 14% 15% 14% 12% 15% 9% 9% 10% 10% Type you usually stay at More upscale than usual More downscale than usual AB

21 Business: Maximum Prepared to Pay/Night 36% 33% 31% 31% 33% 30% 30% 27% 29% 26% 28% 26% 22% 21% 19% 7% 9% 9% 8% 11% 11% 10% 8% 2% 4% Less than $100 $100 to $125 $126 to $150 $151 to >$200 $200+ AB

22 Leisure: Better Deal- Booking Service or Hotel Directly? 3rd Party 62% 58% 60% 59% 55% Hotel Directly 38% 42% 40% 41% 45% AB

23 Business: Better Deal-Booking Service or Hotel Directly? 3rd Party Hotel Directly 42% 36% 40% 40% 39% 58% 64% 60% 60% 61% AB

24 Summary: Rates Midmarket with a restaurant is still the most popular accommodation for leisure travelers. More upscale and luxury accommodations down slightly The majority of business travellers expect to pay more than $125 per night but less than $200 Both leisure and business travelers said they could get a better rate from a third party booking service. Leisure travelers in AB use 3 rd party booking services more than their business counterparts

25 Services

26 Brand vs. Location vs. Price All travellers were asked to rank the importance of brand, location and price Nationally, 60% ranked PRICE first, up 8% over (70%) Alberta (68%) Nationally, 32% ranked LOCATION first, down 6% over (40%) Alberta (27%) Nationally, 8% ranked BRAND first, down 2% over (11%) Alberta (5%)

27 What Makes Travelers go Back to a Hotel? State of Property Convenience Service 29% 31% 23% 26% 20% 23% Amenities 9% 9% Brand 6% 10% AB 2016

28 Business: Making Reservations--Trends 70% 65% 67% 67% 62% 61% 15% 19% 15% 15% 20% 16% 5% 5% 1% 5% 3% 3% AB Phone Internet No Reservation

29 Leisure: Making Reservations--Trends 70% 62% 65% 60% 59% 64% 18% 22% 20% 23% 22% 21% 3% 5% 4% 5% 6% 5% AB Phone Internet No Reservation

30 Leisure: Third Party vs. Direct Booking Best hotel rate: Can AB Third party (Expedia, Travelocity) 58% 62% Hotel directly 42% 38% 70% (Can) and 77% (AB) of 3 rd. party bookers would book with hotel if given free amenities (e.g. free Wi-Fi, keyless entry, etc.) Those booking with hotel directly: 53% (Can) and 49% (AB) book via phone 47% (Can) and 51% (AB) via hotel website

31 Business: Third Party vs. Direct Booking Best hotel rate: Can AB Third party (Expedia, Travelocity) 64% 58% Hotel directly 36% 42% 79% (Can) and 86% (AB) of 3 rd. party bookers would book directly with hotel if given free amenities (e.g. free Wi-Fi, keyless entry, etc.) Those booking with hotel directly: 45% (Can) and 49% (AB) book via phone 55% (Can) and 51% (AB) via hotel website

32 Leisure: Importance of Hotel with Free Breakfast 84% 81% 81% 78% 77% 80% AB

33 Business: Importance of Hotel with Free Breakfast 78% 77% 78% 69% 67% 72% AB

34 Importance of Business Centre 43% 44% 43% 41% 44% 35% AB

35 Leisure: Importance of Amenities Packages 37% 39% 40% 35% 36% Upgrades 44% 43% 41% 39% 49% Pool 49% 48% 49% 47% 46% AB

36 Business: Importance of Amenities 59% Upgrades 57% 57% 48% 53% Pool 31% 36% 34% 41% 33% AB

37 Leisure: Importance of Food Products Coffee Tea Local food Organic Gluten free Room service Kids eat free 28% 29% 30% 32% 12% 16% 16% 13% 15% 16% 15% 15% 37% 32% 36% 29% 20% 20% 24% 20% 41% 43% 42% 65% 53% 57% 56% 52% AB

38 Business: Importance of Food Products Coffee 52% 54% 52% 45% Tea 31% 39% 35% 34% Room service 42% 49% 57% AB %

39 Importance of Restaurant/Bar Leisure Business 49% 55% 54% 56% 53% 64% 66% 65% 58% 55% AB AB

40 Importance of Friendly Service Leisure Business 91% 91% 85% 83% 79% 77% 87% 89% 89% 87% AB AB

41 Importance of Loyalty Program Leisure Business 47% 44% 44% 42% 40% 65% 62% 57% 56% 60% AB

42 Baker s Dozen: Reasons for Choosing a Property-Business Can AB 1. Friendly Service 85% 82% 1 2. Free wireless in the rooms 81% 82% 2 3. Complementary breakfast 77% 78% 3 4. Sound-proof room 77% 74% 5 5. A location 5 minutes from work 74% 69% 7 6. Easy access to outlets 74% 71% 6 7. Free parking 71% 75% 4 8. Well-lit room 71% 69% 8 9. Restaurant/Bar 66% 64% Loyalty program/reward points 65% 67% Large work space in room 64% 62% Fridge in room 62% 65% Free shuttle 61% 59% 13

43 Baker s Dozen: Reasons for Choosing a Property- Leisure Can AB 1. Comfortable mattress 92% 91% 1 2. Friendly service 91% 89% 2 3. Free high speed/wireless 82% 81% 5 4. Free breakfast 81% 84% 3 5. Free parking 78% 82% 4 6. Sound-proof room 73% 74% 6 7. Location 5 minutes from things 72% 70% 8 8. Refrigerator in room 66% 73% 7 9. Hypoallergenic room 64% 47% Free shuttle/taxi service 56% 53% Free coffee 55% 65% Restaurant/bar 55% 49% Stylish décor 50% 42% 16

44 Summary: Services Price more important than location or brand Reservations (business and leisure) Phone up slightly nationally but down in AB Internet down slightly nationally and up in AB Free breakfast more important to leisure travellers than business travellers Even with Wi-Fi, ipad, etc., business centres still important for 4 in 10 business travellers Loyalty programs are most important to business travellers, up 3% over 2015 to a 5-year high Hotels can lure business and leisure travellers back to booking with them directly: offer free amenities such as free Wi-Fi, keyless entry, etc.

45 ENVIRONMENT

46 Leisure: Importance of Environmental Hypo-allergenic rooms Products 40% 47% 64% 60% 56% 53% Green products 3rd. Party Env. Certification Prog. 37% 40% 33% 36% 28% 32% 33% 29% 26% AB

47 Business: Importance of Environmental Products 30% Green products 48% 48% 43% 36% 28% AB Env. Certification Prog. 26% 43% 47% 44%

48 USE OF THE INTERNET

49 Leisure: Internet Sources Used for Accommodation Information Hotel Websites On-line travel agents (Hotels.com) Other Websites (Tripadvisor, etc.) Reward Pts Websites Social Media Sites Hotel Aps for Smartphones 22% 20% 20% 17% 12% 9% 2% 6% 7% 65% 73% 77% 54% 51% 51% 47% 41% 41% AB

50 Leisure: Most Important Destination Information Sources Can The web site of place you are staying 27% 25% Booking service (Expedia or Hotels.com) 19% 23% Previous travel experience 11% 14% Friends/relatives/word of mouth 9% 5% General Internet 8% 9% None/did not get information 5% 6% Comparison shopping site 3% 1% Web site maintained by prov/city visiting 2% 1% Ask Hotel Staff 2% 6% Travel agent 1% 1% Article/report in the media 1% -- Travel guide 1% 1 Motor association (CAA, etc.) 1% 2% Blog posting 1% 2% Social media (Facebook, YouTube, Twitter) 1% -- AB

51 Leisure: Use of Internet - Top Tier Look at photos Look for "specials" Amenities in the room Get maps/directions Comparison shop 93% 89% 88% 90% 87% 88% 87% 87% 85% 86% 86% 84% 88% 81% 81% 86% 75% 78% 78% 75% AB

52 Leisure: Use of Internet - Bottom Tier Read testimonials Consult ratings Take a virtual tour Consult blogs Social media 78% 75% 74% 68% 70% 72% 93% 60% 62% 26% 31% 32% 22% 13% 14% AB

53 Business: Internet Sources Used for Accommodation Information Hotel Websites On-line travel agents (Hotels.com) 73% 69% 72% 76% 69% 62% ther Websites (Tripadvisor, etc.) Reward Pts Websites 28% 23% 25% 43% 46% 50% 8% Social Media Sites AB % 14%

54 Business: Most Important Destination Information Sources Can AB Hotel web site 32% 29% Company preferred suppliers 15% 16% None/no information 14% 13% Previous travel experience 13% 12% Travel agent 7% 5% Friends/relatives/word of mouth 6% 8% Travel guide 2% 5% Comparison shopping site 2% 4% Hotel apps for smart phones (i.e. iphone, Android, Blackberry) 1% 0% Government/tourism authority 1% 2% Travel apps for smart phones (i.e. iphone, Android, Blackberry) 1% 0%

55 Business: Use of Internet - Top Tier Look at photos Look for "specials" Amenities in the room Get maps/directions Shop about room rates 86% 86% 86% 86% 82% 84% 86% 81% 81% 92% 79% 86% 77% 80% 90% AB

56 Business: Use of Internet - Bottom Tier Read testimonials Consult ratings Take a virtual tour 67% 76% 78% 73% 69% 74% 68% 62% 64% Consult blogs Social Media 42% 38% 35% 42% 21% 21% AB

57 Leisure: Source of Information on Last Pleasure/Leisure Trip Internet Internet and travel agent Travel agent only None of the above 3% 6% 10% 1% 1% 2% 2% 13% 13% 13% 6% 82% 80% 75% 63% 29% AB

58 Business: Sources to Gather Information About Accommodations Internet 65% 66% 63% 81% Internet and travel agent 12% 29% 29% 29% Travel agent only 0% 3% 2% 2% 6% 3% 3% 6% None of the above AB

59 Leisure: Influence of Sites on Property Selection Scale 1-5, 1 no influence, 5 great deal of influence, what kind of influence do these have on your hotel, motel or resort selection? Property location Star and diamond ratings on internet Read testimonials/ comments by Videos Travel blogs Social media 20% 22% 25% 18% 14% 16% 17% 12% 75% 77% 68% 71% 77% 72% 52% 54% 59% 56% 40% 45% 49% 50% AB 2016

60 Business: Influence of Sites on Property Selection Scale 1-5, 1 no influence, 5 great deal of influence, what kind of influence do these have on your hotel, motel or resort selection? 78% 76% Property location Star and diamond ratings on internet booking services Read testimonials/ comments by previous travelers Travel blogs Videos Social media 65% 74% 76% 65% 46% 55% 52% 58% 25% 31% 25% 26% 45% 47% 57% 40% 14% AB % 18% 23%

61 Travellers Using Smart Phones CAN AB Communicate with family and friends 62% 65% Check the weather 59% 69% Use GPS/get directions 51% 55% Check departure & arrival times 39% 44% Get tourism information (when attractions/stores 35% 37% open etc. Check/update Facebook 35% 42% Book hotels 20% 17% Make a restaurant reservation 17% 18% Buy entertainment tickets (movie, sports, shows, 16% 18% etc.) Hail a cab/call for a cab 15% 16% Book air/train/bus travel 11% 14% Tweet 10% 7%

62 Hotel Apps CAN AB Find a location 74% 78% Book a hotel 71% 74% Find a reservation 63% 60% Make a hotel reservation 63% 65% Call for reservations, support 60% 67% Link to full website 53% 55% View loyalty program details 53% 65% Search and view packages 46% 37% City guides 45% 43% Share feedback on a recent stay 34% 37% Make a spa reservation 32% 30% Access mobile-only offers 32% 36%

63 Summary: Use of Internet Use of Smart Phones when travelling up Young travellers heavy Smart Phone users Website of place staying=most important source of info Older business travellers rely on previous travel experience Use Internet to look at photos & look for a deal Maps/directions critical More booking through on-line travel agent than with hotel but would change if offered free amenities Ratings and testimonials=big impact choice of property

64 Thank You.