SOUTH DAKOTA GOVERNOR S CONFERENCE

Transcription

1 SOUTH DAKOTA GOVERNOR S CONFERENCE CHANGING TRENDS IN TRAVEL PLANNING AND BOOKING January 23, 2014

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11 THREE TOUCHPOINTS FOR TODAY INSIGHTS ABOUT CHANGING TRAVEL BEHAVIORS AND INTERESTS HOW TECHNOLOGY CONTINUES TO AFFECT TRAVEL HOW IS TRAVEL BRANDING AND MARKETING CHANGING

12 An Obvious Insight TRAVEL MARKETERS HAVE NO PLACE TO HIDE

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14 Key Insight NO. 1 A BRIGHTER HORIZON LINE

15 THE TRAVELER SENTIMENT INDEX TM March 2007 =100 Mar 07 Apr 07 Jun 07 Aug 07 Oct 07 Dec 07 Feb 08 Apr 08 Jul 08 Oct 08 Feb 09 Apr 09 Jul 09 Oct 09 Feb 10 Apr 10 Jul 10 Oct 10 Feb 11 Apr 11 Jul 11 Oct 11 Feb 12 Apr 12 Jul 12 Oct 12 Feb 13 Apr 13 Sep MMGY Global/U.S. Travel Association, travelhorizons ( )

16 DETERRENTS TO TRAVEL ARE DECLINING Financial Factor % Feb 2012 % Feb 2013 Price of gasoline Price of air travel Meltdown of U.S. economy Rising cost of healthcare High level of credit card debt Cost of theme parks/attractions High level of personal debt Possible increase in my personal tax obligation Expectation that I or spouse/partner will lose job Cost of taking care of elderly parents

17 MORE OPTIMISTIC Very/Extremely Optimistic About: My future Future of my children Future of my job Future of my company Future of America Future of the world

18 MORE OPTIMISTIC Very/Extremely Optimistic About: My future Future of my children Future of my job Future of my company Future of America Future of the world

19 INCIDENCE OF TRAVEL (HH with Annual HHI >$50K) 51% - VFR 43% - family vacation 31% - beach vacation Took Trip of >75 Miles from Home Requiring Overnight Accommodations during Past 12 Months 25% - city vacation % 91% 90% 90% out of 10 took at least one leisure trip 4 out of 10 took at least one business trip 19

20 LEISURE TRAVEL INTENTIONS MORE FINALLY SURPASSES FEWER Leisure trips during next year compared to last year More Fewer About the Same Not Sure Source: Portrait of American Travelers, MMGY Global, 2013

21 WHY FEWER TRIPS? AMONGST THOSE CURTAILING Gas Prices Too High Household Budget Concerns High Travel Cost Cost of Airfares No Time Economy/Jobs

22 MORE VACATION TIME IN U.S GOES UNUSED 20% Vacation Days Unused Avg. Vacation Days Available (not including holidays) Avg. Vacation Days Unused Total Millennial Gen X Boomers Total Millennial Gen X Boomers

23 AFFLUENTS LEADING THE WAY EXPECTED TRIPS THIS YEAR VS. LAST YEAR Less 13% None planned 3% More 19% $50K-$124K $125K-$249K $250K+ More Trips The Same Same 65% Fewer Trips

24 MATURES THE NEW MARKET MAKERS Average Amount Spent on Leisure Travel During Past Year Average Longest Consecutive Days Taken for Leisure Trip During Past Year $6, Millennials (18-33) Gen X (34-37) Boomers (48-66) Matures (67+) Millennials (18-33) Gen X (34-37) Boomers (48-66) Matures (67+)

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26 MILLENNIALS: ACQUIRE NEW EXPERIENCES 82% Agree: I am more likely to try new things while on vacation. 73% Agree: I prefer to go to new destinations for my vacations. Top two box score on a scale of one to four where one equals strongly disagree and four equals strongly agree.

27 COMMERCIAL TRANSIENT DEMAND % Growth in Corporate Transactions

28 COMMERCIAL MEETINGS DEMAND MEETING PLANNERS AND THE RECOVERY OPTIMISM 2013 FREQUENCY 2013 BUDGETS RATES HIGHEST SINCE % 46% OF PLANNERS HAVE MORE BUDGET 72% OF PLANNERS EXPECT TO PAY MORE #1 #2 #3 #4 MOST IMPORTANT TO PLANNERS Available Meeting Space Technology Price Service Standards

29 Corporate accounts want us to handle their total meeting spend, which places our associates directly in their procurement process.

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31 The reality is that supplier pricing power is on the rise, both for economic and structural reasons.

32 ADVANTAGE SUPPLIERS

33 What about South Dakota s target audience?

34 ORIGIN MARKETS Region** MT ND WY SD MN WI MI NE IA IL IN OH CO KS MO ** The states have been organized by the U.S. Census definitions of the regions. Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont. Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin, South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia. West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming.

35 DEMOGRAPHY South Dakota Target Group The Counterparts Gender* % % Men Women Ethnicity* White African American 9 13 Hispanic 7 4 Asian or Pacific Islander 2 2 Other 2 1 Marital Status* Married Single (including unmarried couple living together) Divorced/separated/widowed 7 4 Denotes statistically significant differences between the subsets of interest at 95% confidence. The percent profile is the proportion of people in the demographic category expressed as a percentage of all respondents in the subset (e.g., * 70% of those in the South Dakota target group are married)

36 DEMOGRAPHY South Dakota Target Group The Counterparts Education % % Less than 4 years of high school years of high school years college years college Graduate school or more Annual Household Income $50,000 to $74, $75,000 to $99, $100,000 to $124, $125,000 or more Children in Household Yes No Denotes statistically significant differences between the subsets of interest at 95% confidence.

37 GREEN TRAVEL Our target is more in tune with the environment. South Dakota Target Group The Counterparts Do you consider yourself to be an environmentally conscious person? % % Yes No Have you made a travel supplier choice based on the environmental considerations (i.e., carbon footprint) of the travel experience during the past 12 months? Yes 12 7 No Not sure 11 8 Likelihood of Selecting a Travel Supplier with Concern for the Environment over those Who Are Not* Definitely/probably would (top two box score) Neutral Definitely/probably would not (bottom two box score) Denotes statistically significant differences between the subsets of interest at 95% confidence. Asked on a scale of one to five where one equals definitely would not select the travel supplier and five equals definitely would select the * travel supplier.

38 DEMOGRAPHY Our target represents a larger share of Millennials. Millennials Xers Boomers Matures 67+ 6% 29% 37% The Counterparts 28% South Dakota Target Group 27% 9% 30% 34% * Denotes statistically significant differences between the subsets of interest at 95% confidence.

39 INCIDENCE OF TRAVEL AND TRIP EXPENDITURE Our target travels more and spends more. South Dakota Target Group The Counterparts Leisure Trips* Mean # of trips** Longest Consecutive Nights Spent on Leisure Trip/Vacation Mean # of trips** Estimated Expenditure on Leisure Travel/Vacations during the Past 12 Months Estimated Expenditure Spent Online on Leisure Travel/Vacation during the Past 12 Months Mean ($) $ Mean ($) $ Denotes statistically significant differences between the subsets of interest at 95% confidence. * Leisure trip is defined as one of at least 75 miles from home requiring overnight accommodations ** Among those who took one or more leisure trips

40 VACATION ATTRIBUTES CONSIDERED EXTREMELY/VERY DESIREABLE South Dakota Target Group The Counterparts Experimentation/Fantasy/Ambiance* % % Beautiful scenery A place I have never visited before A beach experience An opportunity to eat different and unusual cuisines A historic hotel or resort (one that is on the National Register Of Historic Places) A hotel or resort with a distinctive theme or atmosphere Going to theme parks Nightlife and live entertainment Going to an amenity spa that is part of a hotel, resort or cruise ship Denotes statistically significant differences between the subsets of interest at 95% confidence. * Top two box score on a scale of one to five where one equals not at all desirable and five equals extremely desirable.

41 VACATION ATTRIBUTES CONSIDERED EXTREMELY/VERY DESIREABLE South Dakota Target Group The Counterparts Experimentation/Fantasy/Ambiance (Cont d) % % Attending film, music, art or other festivals Going to a destination spa that offers complete spa and wellness programs Learning a new skill or activity A small boutique hotel with unusual architecture and décor Being able to gamble at a casino Recreational boating A lifestyle hotel like the W A resort that offers a clothing optional or nude recreation experience 14 9 A nude beach experience 10 8 Denotes statistically significant differences between the subsets of interest at 95% confidence. * Top two box score on a scale of one to five where one equals not at all desirable and five equals extremely desirable.

42 VACATION ATTRIBUTES CONSIDERED EXTREMELY/VERY DESIREABLE South Dakota Target Group The Counterparts Physical Activities % % Hiking, climbing or other outdoor adventure Snorkeling or scuba diving Participating in water sports (waterskiing, surfing, wakeboarding, windsurfing, kite surfing, etc.) White water rafting/ Kayaking Fishing Snow skiing/snow boarding 23 9 Equestrian/horseback riding Playing golf Playing tennis Denotes statistically significant differences between the subsets of interest at 95% confidence. * Top two box score on a scale of one to five where one equals not at all desirable and five equals extremely desirable.

43 VACATION ATTRIBUTES CONSIDERED EXTREMELY/VERY DESIREABLE South Dakota Target Group The Counterparts Other Activities % % Having enough time just to relax and unwind Visiting architectural or historical sites Visiting museums A hotel that has a kids club or organized family activities** Shopping Attending performing art events Visiting a space museum Attending amateur or professional sporting events Denotes statistically significant differences between the subsets of interest at 95% confidence. * Top two box score on a scale of one to five where one equals not at all desirable and five equals extremely desirable. ** Asked among respondents who have child(ren) under 18 in household

44 VACATION ATTRIBUTES CONSIDERED EXTREMELY/VERY DESIREABLE South Dakota Target Group The Counterparts Familiarity/Control % % Safety of the destination Having access to the Internet or an online service from my hotel room Security provided by the hotel or motel A place I have visited before Availability of hotels/resorts that allow your pets to stay with you Pricing An all-inclusive vacation price (one that includes air transportation, accommodations, food, transfer to the hotel or resort and some recreation) An all-inclusive resort price (one that includes my accommodations, food, beverage and recreation) Hotels/resorts that offer special rates for kids** Denotes statistically significant differences between the subsets of interest at 95% confidence. * Top two box score on a scale of one to five where one equals not at all desirable and five equals extremely desirable. ** Asked among respondents who have child(ren) under 18 in household.

45 ACCOMMODATION PREFERENCES Our target stays in non-traditional accommodations. South Dakota Target Group The Counterparts Stayed in during the Past 12 Months* % % Hotel/motel Someone else's private residence Resort Inn or Bed & Breakfast (B&B) 14 7 Cruise ship Campground 12 2 Vacation home you rented 10 7 Vacation condominium you rented 10 7 A timeshare you own 5 4 Timeshare you rented or exchanged 5 6 Vacation home you own 5 4 Recreational vehicle (RV) or camper 4 2 Vacation condominium you own 4 2 Some other form of accommodation 5 3 Denotes statistically significant differences between the subsets of interest at 95% confidence. * Does not equal 100% due to multiple responses.

46 SERVICES BOOKED ONLINE Our target books accommodations online. Hotel or other lodging South Dakota Target Group The Counterparts Airfare Car rental Vacation package Cruise 8 12 Other 6 5 Denotes statistically significant differences between the subsets of interest at 95% confidence. * Asked among those who have booked online through various online sources on leisure travel/vacations during the past 12 months.

47 DURATION OF LEISURE TRIPS TAKEN Our targets take longer trips. South Dakota Target Group The Counterparts Weekend Trips* % % One or more None Mean # of trips** Weekday Trips*** One or more None Mean # of trips** Extended Trips**** One or more None Mean # of trips** Denotes statistically significant differences between the subsets of interest at 95% confidence. * "Weekend trip" is defined as a trip of one to four nights that involved a stay over a Saturday night. ** Among those who took one or more trips in the category. *** "Weekday trip" is defined as a trip of one to four nights that did not involve a stay over a Saturday night. **** "Extended trip" is defined as a trip of five or more nights.

48 CELEBRATION VACATIONS* Our targets take celebration vacations. Yes No 32% The Counterparts 68% South Dakota Target Group 40% 60% Yes No Denotes statistically significant differences between the subsets of interest at 95% confidence. * Leisure trips/vacations to celebrate one s own or someone else s life events such as a milestone birthday or anniversary.

49 CELEBRATION VACATIONS* Our target travels for weddings, family reunions and class reunions. South Dakota Target Group The Counterparts Birthday Anniversary Wedding Family reunion Graduation from high school, college, etc Honeymoon Class reunion 5 12 Bachelor/Bachelorette party 5 6 Religious celebration (e.g. bar/bat mitzvah, 5 6 Engagement 1 4 Retirement 3 3 Bonus or raise in compensation for my job 3 6 New job 2 4 Other 4 2 Denotes statistically significant differences between the subsets of interest at 95% confidence. * Asked among leisure travelers who have taken a leisure trip/vacation to celebrate one of their own or someone else s life events

50 LEISURE TRIP PARTY COMPOSITION* Our target takes their children and grandchildren on vacation. South Dakota Target Group The Counterparts Took One or More Trips during the Past 12 Months* % % With spouse or another adult, without children Mean # of trips** With children (net) Mean # of trips** With spouse or another adult with children Mean # of trips** With children only 9 9 Mean # of trips** Alone Mean # of trips** Denotes statistically significant differences between the subsets of interest at 95% confidence. * Does not equal 100% due to multiple responses. ** Among those who took one or more trips in the category.

51 TRAVEL WITH GRANDPARENTS South Dakota Target Group No Yes Grandparent Have traveled with grandchild(ren) on one or more leisure trips during the past 12 months* The Counterparts No Yes Grandparent Have traveled with grandchild(ren) on one or more leisure trips during the past 12 months* Denotes statistically significant differences between the subsets of interest at 95% confidence. * Asked among adults who are grandparents.

52 STAYCATION Our target is more likely to vacation in their backyard. Did you take an overnight leisure trip/vacation in your local area (within a 50-mile drive radius of your home) as an alternative to vacationing in a destination that would have required you to travel a much greater distance at least once during the past 12 months? South Dakota Target Group The Counterparts Yes No Yes No 28% 21% 72% 79% Denotes statistically significant differences between the subsets of interest at 95% confidence.

53 LAST MINUTE TRIPS AND FLASH SALES And react to last minute deals. South Dakota Target Group The Counterparts % % Took Last-minute Trips during the Past 12 Months Average Number of Days in Advance Planned Last-minute Trips Taken during the Past 12 Months* Purchased a Travel Service as a Result of Flash Sales 16 8 Types of Services Booked as a Result of Flash Sales ** Hotel or other lodging 49 27*** Airfare 58 37*** Vacation package 34 34*** Car rental 25 37*** Cruise 14 27*** Other 2 - Denotes statistically significant differences between the subsets of interest at 95% confidence. * Asked among those who took a last minute trip in the past 12 months. ** Among those who purchased a service as a result of a flash sale. Does not equal 100% due to multiple responses *** Use caution upon interpretation due to small n-size. Significance texting not performed.

54 COLLECTIVE BUYING AND PRIVATE SALES Our target is twice as likely to use collective buying sites. South Dakota Target Group No Yes 14 7 Have you ever purchsed a travel service on a collective buying website such as LivingSocial Escapes or TripAlertz? Have you ever purchsed a travel service from an invitationl only private sale website such as Jetseter, Vacationist, Snique Away, Tablet or ideeli? The Counterparts No Yes 6 5 Have you ever purchsed a travel service on a collective buying website such as LivingSocial Escapes or TripAlertz? Have you ever purchsed a travel service from an invitation only private sale website such as Jetseter, Vacationist, Snique Away, Tablet or ideeli? Denotes statistically significant differences between the subsets of interest at 95% confidence.

55 MODES OF TRANSPORTATION ON LEISURE TRIPS Our target definitely drives. South Dakota Target Group The Counterparts Modes Used during the Past 12 Months* % % Personal automobile (excluding trips to and from the airport) Scheduled commercial airline Rental car/vehicle Cruise ship 11 8 Bus 9 7 Train 8 11 Recreational vehicle (RV) 5 4 Private aircraft 2 1 Other 3 3 Denotes statistically significant differences between the subsets of interest at 95% confidence. Does not equal 100% due to multiple responses. Among those who have used the respective mode of transportation on one or more trips. * Traveled completely or partially by various modes.

56 DISTRIBUTION CHANNELS Our travelers plan travel online at a higher rate 11% 6% South Dakota Target Group The most convenient way to arrange my travel plan is Over the phone, directly from the travel service supplier (the airline, hotel or car rental company) 37% Over the phone, through a traditional travel agent 46% Online, through the website of an online travel agency like Expedia, Travelocity, Orbitz, etc. Online, through an airline, hotel or car rental supplier's website The Counterparts The most convenient way to arrange my travel plan is Over the phone, directly from the travel service supplier (the airline, hotel or car rental company) Over the phone, through a traditional travel agent 31% 11% 3% Online, through the website of an online travel agency like Expedia, Travelocity, Orbitz, etc. Online, through an airline, hotel or car rental supplier's website 55% Denotes statistically significant differences between the subsets of interest at 95% confidence.

57 TYPES OF WEBSITES VISITED FOR ONLINE RESERVATIONS South Dakota Target Group The Counterparts Types of Typical Websites for Online Reservation* % % An online travel agency site such as Expedia, Travelocity, etc A branded travel service supplier site such as American Airline, Hilton, Hertz, etc. A meta search or comparison shopping site such as Kayak or Dealbase (TripAdvisor) A collective buying website such as Groupon Getaways, LivingSocial Escape that allows multiple people to book the same deals and packages at the same time A traditional travel agent 6 4 American Express Travel Services 6 4 A private sale website such as Jetsetter or Vacationist that provides invitation-only access to travel deals, discounts unavailable to the general pubbic 5 5 Other Denotes statistically significant differences between the subsets of interest at 95% confidence. Does not equal 100% due to multiple responses. Among leisure travelers who have used the Internet or an online service to obtain travel * information/make a travel reservation.

58 38% HAVE REVIEWED DESTINATIONS IN ONLINE COMMUNITIES Portrait of Digital Travelers 2013 MMGY Global/Harrison Group

59 SOCIAL MEDIA South Dakota Target Group The Counterparts Have you authored and posted content to a travel related online community, travel forum or blog during the past 12 months? % % Yes 17 8 No Have you posted picture or videos to a travel related online community, travel forum or blog during the past 12 months? Yes 12 7 No Have you ever made a travel decision based primarily on research or feedback received on a social networking website such as Facebook, Myspace, YouTube or Twitter? * Yes 10 5 No Denotes statistically significant differences between the subsets of interest at 95% confidence. * Asked among those currently maintain one or more profiles/information on any social networking site.

60 43% DOWNLOAD TRAVEL RELATED APPS WITH SMARTPHONES Portrait of Digital Travelers 2013 MMGY Global/Harrison Group

61 59% Find Restaurants or shops nearby based on specific input 34% Look for ratings or reviews of hotels, restaurants or destinations, etc. 25% Comparison shop airfares and hotel rates 15% Book air travel or lodging 13% Book attraction, activity tickets, etc. Portrait of Digital Travelers 2013 MMGY Global/Harrison Group

62 29% ACCESS THE INTERNET FROM A TABLET Portrait of Digital Travelers 2013 MMGY Global/Harrison Group

63 40% Find restaurants or shops nearby based on specific input 40% Comparison shop airfares and hotel rates 36% Look for ratings or reviews or hotels, restaurants or destinations, etc 33% Search for the latest information on flight schedules and delays 26% Book air travel or lodging Portrait of Digital Travelers 2013 MMGY Global/Harrison Group

64 FUTURE TRIP INTENTIONS Our target will travel more in the next 12 months More trips Same number of trips Fewer trips None 4% 12% 17% The Counterparts 6% 67% 15% 15% South Dakota Target Group 64% More trips Same number of trips Fewer trips None

65 Key Insight NO. 2 DIGITAL TRAVELERS ARE MORE RESOURCEFUL

66 TECHNOLOGY ALLOWS SELF-RELIANCE 32% I find I am relying on more sources of advice than ever before when making vacation and personal travel decisions.

67 WHAT CHARACTER DID ELVIS PLAY IN VIVA LAS VEGAS?

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71 TRAVEL PLANNING THEN

72 TRAVEL PLANNING NOW

73 TRAVEL PLANNING NOW

74 Where should we go on vacation? Let s go to South Dakota!

75 What would it cost us? Who should we trust to plan our trip?

76 Online Research

77 Price shop Airline Packages (air, hotel and car) What s the Climate like and Things To Do?

78 Book the travel Local Maps

79 Check this out What a great trip!

80 Key Insight NO. 3 IT S NOT JUST ABOUT PRICE BUT.

81 JCP PROVES OUR CUSTOMERS ARE STILL FRUGAL

82 DESIRABLE WEBSITE FEATURES FEATURE % 2013* Ability to check the lowest available fares or rates 83 A lowest price/rate guarantee 80 Photos/videos of the destination and resort facilities, attractions, etc. 78 Having an easy-to-use booking feature 74 Ability to compare the fares or rates of multiple suppliers/carriers 73 Perception of brand quality and reputation 73 Ability to preview room location 68 Option of scheduling/confirming activities in advance of arrival 62 Ability to check last-minute air, hotel and car rental availability 62 Interactive map that lets you explore the destination visually 62 *ASKED AMONG THOSE WHO HAVE STAYED IN A HOTEL OR MOTEL ON ONE OR MORE LEISURE TRIPS DURING THE LAST 12 MONTHS.

83 DESIRABLE WEBSITE FEATURES FEATURE % 2013* Ability to check the lowest available fares or rates 83 A lowest price/rate guarantee 80 Photos/videos of the destination and resort facilities, attractions, etc. 78 Having an easy-to-use booking feature 74 Ability to compare the fares or rates of multiple suppliers/carriers 73 Perception of brand quality and reputation 73 Ability to preview room location 68 Option of scheduling/confirming activities in advance of arrival 62 Ability to check last-minute air, hotel and car rental availability 62 Interactive map that lets you explore the destination visually 62 *ASKED AMONG THOSE WHO HAVE STAYED IN A HOTEL OR MOTEL ON ONE OR MORE LEISURE TRIPS DURING THE LAST 12 MONTHS.

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89 Key Insight NO. 4 WE RE ALWAYS ON

90 DESKTOP VS. MOBILE USERS FEATURES

91 MOBILE IS ONE AREA WHERE TRAVEL IS LEADING 3 rd largest mobile marketing sector in the world, behind only Gov t and Employment 51% predicted % of overall marketing spend in the mobile channel by 2015

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93 EXPLOSION OF MOBILITY Have access to internet VIA: 2010* 2011* 2012* 2013* 54% 62% Smartphone 23% 23% 54% 62% 27% 43% Tablet n/a 7% 27% 43% 10% 23% Internet-enabled TV n/a n/a 10% 23% *DOES NOT EQUAL 100% DUE TO MULTIPLE RESPONSES.

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96 Key Insight NO. 5 ONLINE IS TIED TO BOTH RELAXATION AND CONTENT CONSUMPTION

97 CONNECTIVITY IS KEY

98 ATTITUDES TOWARD TECHNOLOGY AGREE: TOP TWO BOX Technology helps me to relax & unwind 76% I often go online for no particular reason just to pass the time 62%

99 But why are they spending so much uptime to experience downtime? 1996 Content is King!

100 WEEKLY MEDIA CONSUMPTION Millennial Gen X Boomer Matures TELEVISION RADIO NEWSPAPERS & MAGAZINES WEB

101 LONG AND SHORT FORM CONTENT CONSUMPTION Watches TV Online Hulu.com Network Site Netflix Other Website

102 DECLINING REACH OF PRINT % I look for travel deals in the newspaper* Millennials Gen X Boomer Matures % 27% 28% 37% %

103 FOR PEOPLE ONLINE LOCAL CONTENT RULES Total Millennial Gen X Boomer Matures CITY PAPER LOCAL NEWSPAPER NEW YORK TIMES USA TODAY

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105 Key Insight NO. 6 SOCIAL MEDIA INFLUENCES AND ITS CHANGING

106 SOCIAL MEDIA vs. FRIENDS & FAMILY CONFIDENCE IN TRAVEL PLANNING RESOURCES 82% 28% SOURCE: PORTRAIT OF AMERICAN TRAVELERS, MMGY GLOBAL, 2013

107 HOW FRIENDS & FAMILY SHARE TRAVEL INFORMATION 86% 60% 54% IN PERSON BY PHONE 28% 19% 10% SOCIAL MEDIA TEXTING INSTANT MESSENGER 9% 4% MAIL VIDEO CHATS

108 THE INFLUENCE OF THE CIRCLE Key Insight OF TRUST NO. 6 SOCIAL MEDIA INFLUENCES AND IS CHANING

109 IT S ALSO ABOUT THE CURTAIN OF NERVE

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111 SOCIAL MEDIA INSPIRES 33% Reference social network for Ideas & Inspiration* OTAs SUPPLIER SITE TRAVEL AGENT 22% 22% 23%

112 SOCIAL STATUS 25% Agree I post my vacation photos on social media sites to make my friends & family jealous. 32% Agree I like using social media to share a record of my travel experiences. MILLENNIALS GEN X BOOMER MATURES 67+ MILLENNIALS GEN X BOOMER MATURES % 29% 16% 6% 49% 36% 20% 6%

113 The age of social content as purely an organic medium is fading. We ve hit the monetization stage and it s all about data.

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115 SOME THINGS TO THINK ABOUT?

116 THE TRAVELING CONSUMER IS MORE CONFIDENT BUT DEMOGRAPHICS AND BEHAVIORS ARE COMPLICATED PRICE IS STILL CRUCIAL BUT CONNECTING CUSTOMER RESOURCEFULLNESS TO BRAND EXPERIENCE IS KEY TECHNOLOGY WILL GROW AS AN ENABLER AND THE BEST WAY TO ENSURE RELEVANCE IS CONTENT DATA AND INFLUENCER MARKETING WILL BE INCREASINGLY IMPORTANT AND INCREASINGLY SOLD BY ITS PURVEYORS

117 Many Destinations and Travel Suppliers today LACK A UNIQUE SENSE OF THEMSELVES

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119 IT S A CAROUSEL NOT A WHEEL

120 THANK

121 TOP 10 TRAVEL-RELATED ACTIVITIES ON MOBILE DEVICES ACTIVITY SMARTPHONE TABLET Find restaurants or shops nearby based on specific criteria input Navigate a destination using your phone s GPS Search for the latest information on flight schedules and delays Look for ratings or review of hotels, restaurants or destinations, etc Share information, photos or videos about your travel experiences Comparison shop hotel rates Scan QR codes in ads or promo material 24 7 Use check in feature on Facebook, Foursquare, etc Participate in customer loyalty by liking something on Facebook 2 49 Book air travel or lodging 16 28

122 TOP 10 TRAVEL-RELATED ACTIVITIES ON MOBILE DEVICES ACTIVITY SMARTPHONE TABLET Find restaurants or shops nearby based on specific criteria input Navigate a destination using your phone s GPS Search for the latest information on flight schedules and delays Look for ratings or review of hotels, restaurants or destinations, etc Share information, photos or videos about your travel experiences Comparison shop hotel rates Scan QR codes in ads or promo material 24 7 Use check in feature on Facebook, Foursquare, etc Participate in customer loyalty by liking something on Facebook 2 49 Book air travel or lodging 16 28