REALITY MYTH. U.S. and Boston Lodging Consumer. Presented by D.K. Shifflet & Associates, Ltd. Boston HSMAI October 11, 2012

Transcription

1 MYTH U.S. and Boston Lodging Consumer Presented by D.K. Shifflet & Associates, Ltd. Boston HSMAI October 11, 2012

2 DKSA BACKGROUND Established 1982: Emphasis on client support Syndicated and custom research First to provide: Large scale, monthly syndicated traveler tracking (1986) Provider of: Quality, established, projectable population samples for travel Reports utilizing appropriate metrics by travel sector Industry Involvement: ESOMAR, CASRO, INT L STATISTICAL INSTITUTE TTRA, DMAI, HSMAI, AH&LA, PATA+ Cornell, GW, Purdue, Illinois, Texas A&M

3 Clients by Segment Industry Lodging Chains: 35+ Hotel and Other Lodging Organizations Transportation: Airlines Travel Associations: AAA, AH&LA, GBTA, ASTA Financial Services & Other Travel Related Organizations National Governments DOC (OTTI & BEA models) DHS (FEMA/Homeland Security models) Mexico, Canada and Australia Tourism States, Cities & Attractions State, City and Attraction/Activity Tourism Organizations

4 DKSA Research Products DKSA Products Syndicated Proprietary Performance/Monitor SM Segmentation Lodging Insights/Monitor SM Décor and Functionality Lodging Amenities/Monitor SM Concept & ROI Client Defined Custom Research/Analysis

5 PERFORMANCE/Monitor SM Methodology For benchmarking purposes, DKSA utilizes the KnowledgePanel offered by Knowledge Networks (KN) Address-based consumer online panel KN is the first online panel provider to recruit households by randomly selecting residential addresses using their patented Addressed Based Sampling (ABS) system Households are not permitted to self-select into KnowledgePanel Sample balanced to U.S. census on five variables: 1. HH income 2. Population density 3. Age 4. Household size 5. Geographic region Since almost 30% of U.S. households do not have internet access at home, when KN recruits these households they supply them with a free computer and Internet service Sample is supplemented with other quality panels 12,000+ survey invitations per month Returns rebalanced to above + individual states + education

6 PERFORMANCE/Monitor SM Methodology 170,000 respondent households annually More than 65,000 traveling U.S. households respond annually, representing 125,000+ stays at destinations throughout the U.S. and Internationally Overnight trips taken in past 3 months and stayed away from home, local or distant, for at least one night Stay in hotels and other accommodations paid and free Day trips taken in past 1 month outside local area Past 12 month data for paid vs. non-paid overnight accommodations Business/Leisure breakout for hotel/paid accommodations Past 12 month data for air travel (as of 2011)

7 DKSA CONSUMER TRAVEL DATA - TRIP INFORMATION Origin/ Destination Markets Travel Party Type How Paid: Air/ Rental Car Attractions/ Cultural Activities Country One Adult Cash/Check Beach/ Waterfront State or Province 2 Men or 2 Women or 1 Man/1 Woman Credit Card Brand Concerts, Theater, Dance etc. US Census Region 3+ Adults Redeemed Points/ Miles Eco-Sustainable Travel DMA/MSA/County/City Families Company Direct Bill Festivals/ Fairs (state, craft etc.) Destination Ratings (10pt scale) Trip Purpose Company Paid Incentive Trip* Historic Sites Value Business Reservation: Air/ Rental Car Museums, Art Exhibits etc. Satisfaction Leisure/Personal Call or Visit Ticket Office Parks (national, state etc.) Friendly/Helpful People* Both 800 Phone# Theme/ Amusement/ Water Parks Feeling of Safety* Leisure Main Purpose Travel Agent Wildlife Viewing (birds, whales, etc.)* Likely to Recommend* Getaway Weekend Corporate Travel Department Zoo/ Aquarium* Prior Visits to Destination General Vacation Corporate Travel Agent* Sports Activities Number of times in past 3 years Visit Friends/ Relative My Company s Approved Travel Website Biking* Boating/ Sailing Expenditures Special Event (celebration, reunion, etc.)** Airline or Rental Car brand Website Camping Fishing* Transportation Medical/Healthcare* Orbitz* Golf Hiking* Rental Car Convention, Show, Conference* Expedia* Hunting* Tennis* Food/Drink Seminar, Class, Training* Priceline* Amateur Sports (attend/ participate)* Shopping Other Personal Travelocity* Professional Sports Event* Entertainment/Recreation Business Main Purpose Other Website (coded) Extreme/ Adventure Sports Room Convention Mobile Phone Application* Snow/Winter Sports Other Lodging Services* Seminar/ Training None Water Sports* Package Tour Other Group Meeting Airline Brand (15+ brands) Personal/ Celebration/ Gatherings Other Expenditures Sales/ Purchasing Non-Stop Flight* Wedding* Total Client Service/ Consulting Class of Service* Funeral/Memorial* Distance Inspect/ Audit Economy Class/Coach Holiday Celebration (Thanksgiving, July 4 th ) Round Trip & One-Way Construction/ Repair Premium Economy Class Reunion/ Graduation* <250 Miles Government/ Military Business Class Medical/ Health/ Doctor Visit* Miles Other Company Business First Class Religious/ Faith Based Gathering* 500-1,000 Miles Transportation Airline Ratings (10pt scale) Visit Friends/ Relatives (general visit) > 1,000 Miles Airplane Value Entertainment Activities & custom radii (point to point for air) Personal Vehicle Satisfaction Culinary/ Dining Experience* Length of Trip/Stay Rental Vehicle Rental Car Brand (10+ brands)* Gambling (slots, cards, horses etc.) Average Length of Trip/Stay Bus Rental Car Ratings (10pt scale) Movies* Day-Trip Amtrak Value Nightlife (bar, nightclub etc.) 1-3 Nights Other Train Satisfaction Shopping* 4-7 Nights Taxi* General Interest Activities Spa* 8+ Nights Other Transportation Service/ Volunteerism/ Charity* Touring/ Sightseeing & Custom Breaks Real Estate (buy, sell) Winery/ Distillery/ Brewery Tours* Other Activities

8 DKSA CONSUMER TRAVEL DATA - LODGING INFORMATION Lodging Type Hotel Brand Ratings (10pt scale) Reservation: Hotel How Paid Standard Hotel Value Call or Visit Hotel Directly Cash/Check Resort Hotel Satisfaction 800 Phone # Credit Card Brand All-Suite Hotel Service** Travel Agent Company Direct Bill Timeshare Hotel Room and Building Corporate Travel Department Redeemed Points/ Miles Corporate Apartment Amenities/ Services Provided* Corporate Travel Agent* Company Paid Incentive Trip* Bed & Breakfast Staff Service (friendly/ helpful)* My Company s Approved Travel Website* Site Location of Property Home/Condo/Apt. (not mine) Likely to Recommend Hotel Brand Website Airport My home/condo/apartment Room Composition Orbitz* Downtown Ship/cruise One Adult Expedia* Suburban Camping/RV Park 2 Men or 2 Women or 1 Man/1 Woman Priceline* Highway Other Lodging 3+ Adults Travelocity* Small Town Families Other Website (coded) National/State Park Hotel Brand (100+ coded) Hotel Segment Mobile Phone Application * Room Rate Paid Upscale (Upscale & Luxury) None Actual (ADR) Mid-Scale (Upper Mid & Lower Mid) Economy (Budget & Economy) Extended Stay Traveler Demographics Gender Occupation Age Program Memberships Male Management, Business, Financial years Hotel Programs (15+ brands) Female Professional years Airline Programs (15+ brands) Income Technical 55+ years Rental Car (10+ brands) <$50,000 Sales Average & custom breaks Other Clubs (AAA,AARP etc.) $50,000-$99,999 Military Generation breaks Number of Clubs $100,000+ Five additional listed occupations plus other Education Annual Travel in Paid Accommodations Average/ Median & custom breaks Unemployed, retired, student (separate) High School or Less 1-10 Nights Traveled for Business Household Size Stay at Home Parent* Attend College 11+ Nights Traveled for Business # in household Ethnicity College Graduate 1-10 Nights Traveled for Leisure Presence of Children White Post Graduate 11+ Nights Traveled for Leisure Sexual Orientation African-American & Custom Breaks Straight Asian-American Gay/Lesbian Hispanic Other

9 DKSA LODGING TIERS High End Mid-Level Economy Luxury Upscale Upper Moderate Moderate Lower Moderate Budget Fairmont Crowne Plaza Aloft Baymont AmericInn Best Inn Four Seasons Disney Clarion Best Western Comfort Inns Budget Host Inn Helmsley Doubletree Country Inns & Suites Candlewood Days Inn Crossland Suites Intercontinental Element Courtyard Comfort Suites Extended Stay Econo Lodge Loews Embassy Suites Four Points Drury inn Homestead Studio Knights Inn Le Meridien Hawthorn Suites Hilton Garden Inn Fairfield Inn Inn Town Suites Microtel Luxury Collection Hilton Holiday Inn Hampton Inn Ramada Limited Motel 6 Nikko Homewood Suites Hotel Indigo Holiday Inn Express Red Roof Rodeway Inn Preferred Hyatt Hyatt Place Homegate Studios Shoney Studio 6 Regent Marriott Lexington Suites Howard Johnson Sleep Inns Suburban Lodge Ritz Carlton Omni Novotel La Quinta Studio Plus Super 8 St. Regis Radisson Ramada Mainstay Suites Sun Suites Thriftlodge Sofitel Renaissance Red Lion Park Inn The Hearthside Villager Lodge Steigenberger Residence Inn Shilo Quality Inn Travelodge SC/I W Hotels Sheraton Welleslay Springhill Suites SC/I SC/I Westin Wingate Staybridge Suites Wyndham Wyndham Garden SC/I SC/I SC/I

10 Travel is All About the Hotel 10

11 People Travel To Do Stuff Attractions (sports, gambling, amusement parks, etc.) Culinary/Dining Experience Shopping Culture (concerts, theater, festivals, historic sites, etc.) Leisure Nature (parks, beach, etc.) Touring/Sightseeing Outdoor Sports (golf, boating, snowsports, etc.) 0% 10% 20% 30% 40% % of U.S. Hotel Stays 11

12 Even Business Travelers! Attractions (sports, gambling, amusement parks, etc.) Culinary/Dining Experience Shopping Culture (concerts, theater, festivals, historic sites, etc.) Nature (parks, beach, etc.) Leisure Business Touring/Sightseeing Outdoor Sports (golf, boating, snowsports, etc.) 0% 10% 20% 30% 40% % of U.S. Hotel Stays 12

13 And Specialty Markets Continue to Grow Reunions/ Graduations Amateur Sports Winery/ Brewery Tours Medical/ Health Visit Religious/ Faith Based Conference Service/ Volunteerism 13

14 Especially in Boston! US Boston Reunions/ Graduations Amateur Sports Winery/ Brewery Tours Medical/ Health Visit Religious/ Faith Based Conference Service/ Volunteerism 14

15 Take Away Partner with local community to better serve guest needs and earn their loyalty and recommendations. And don t forget business guests. 15

16 There is a direct relationship between satisfaction with a hotel and satisfaction with a city 16

17 LEISURE REALITY 60% Leisure Guests Generally Rate City Higher Than Hotel High Hotel Rating 58% 56% City = 59% Hotel = 54% Hotel Rating (%9-10) Leisure Guests 54% High City Rating 52% 50% 48% 48% 53% 58% 63% 68% City Rating (%9-10) Leisure Guests 17

18 LEISURE REALITY 60% Not All Cities Are The Same High Hotel Rating San Diego, CA 58% 56% Phoenix, AZ Las Vegas, NV Hotel Rating (%9-10) Leisure Travelers 54% 52% Indianapolis, IN Washington, DC Atlanta, GA AVERAGE Nashville, TN Chicago, IL Boston, MA Philadelphia, PA High City Rating San Francisco, CA 50% Dallas, TX Denver, CO New York City, NY 48% Houston, TX 48% 53% 58% 63% 68% City Rating (%9-10) Leisure Travelers 18

19 LEISURE REALITY 60% Not All Cities Are The Same High Hotel Rating San Diego, CA 58% 56% Phoenix, AZ Las Vegas, NV Hotel Rating (%9-10) Leisure Travelers 54% 52% Indianapolis, IN Washington, DC Atlanta, GA AVERAGE Nashville, TN Chicago, IL Boston, MA Philadelphia, PA High City Rating San Francisco, CA 50% Dallas, TX Denver, CO New York City, NY 48% Houston, TX 48% 53% 58% 63% 68% City Rating (%9-10) Leisure Travelers 19

20 BUSINESS REALITY Unlike Leisure, Business Rates City Lower than Hotel High Hotel Rating 56% City = 47% Hotel = 51% Hotel Rating (%9-10) 51% Business Travelers High City Rating 46% 41% 35% 40% 45% 50% 55% City Rating (%9-10) Business Travelers 20

21 And Not All Cities Are the Same High Hotel Rating 56% Hotel Rating (%9-10) 51% Business Travelers 46% Dallas, TX Philadelphia, PA Houston, TX Chicago, IL Atlanta, GA Boston, MA AVERAGE Las Vegas, NV Washington, DC Indianapolis, IN Phoenix, AZ New York City, NY Orlando, FL Nashville, TN San Diego, CA High City Rating San Francisco, CA 41% 35% 40% 45% 50% 55% City Rating (%9-10) Business Travelers 21

22 And Not All Cities Are the Same High Hotel Rating 56% Hotel Rating (%9-10) 51% Business Travelers 46% Dallas, TX Philadelphia, PA Houston, TX Chicago, IL Atlanta, GA Boston, MA AVERAGE Las Vegas, NV Washington, DC Indianapolis, IN Phoenix, AZ New York City, NY Orlando, FL Nashville, TN San Diego, CA High City Rating San Francisco, CA 41% 35% 40% 45% 50% 55% City Rating (%9-10) Business Travelers 22

23 Take Away Cooperation between a city and its hotels provides a positive outcome for all especially the traveler 23

24 Social Media is For Young People 24

25 Sharing Pictures Is the Dominate Travel Related Social Network Activity Activities participated in before/during/after travel Sharing travel pictures/videos on social network sites Posting about TRAVEL experience: ON FACEBOOK Posting about HOTEL experience: ON FACEBOOK 'Like' Hotel brands on FACEBOOK Posting about TRAVEL experience: ON TWITTER Posting about TRAVEL experience: ON OTHER SITES Posting about HOTEL experience: ON OTHER SITES Posting about HOTEL experience: ON TWITTER Following HOTELS on TWITTER 0% 10% 20% 30% 40% 50% 60% 70% 80% Spring 2012 Hotel Performance Study Representative sample of 5000 travelers 25

26 Sharing travel pictures/videos on social network sites Posting about TRAVEL experience: ON FACEBOOK Posting about HOTEL experience: ON FACEBOOK Millennials, Followed By GenX, Much More Active In All Travel Related Social Networking Activities Activities participated in before/during/after travel 'Like' Hotel brands on FACEBOOK Posting about TRAVEL experience: ON TWITTER Posting about TRAVEL experience: ON OTHER SITES Total Travelers Boomer GenX Millennial Posting about HOTEL experience: ON OTHER SITES Posting about HOTEL experience: ON TWITTER Following HOTELS on TWITTER 0% 10% 20% 30% 40% 50% 60% 70% 80% Spring 2012 Hotel Performance Study Representative sample of 5000 travelers 26

27 Among Millennials, Business Travelers Are More Active In Hotel Specific Social Networking Activities REALITY Activities participated in before/during/after travel among Millennial travelers Sharing travel pictures/videos on social network sites Posting about TRAVEL experience: ON FACEBOOK Posting about HOTEL experience: ON FACEBOOK Follow Hotel brands on FACEBOOK Posting about TRAVEL experience: ON TWITTER Posting about TRAVEL experience: ON OTHER SITES Millennial Leisure Business Female Male Posting about HOTEL experience: ON TWITTER Posting about HOTEL experience: ON OTHER SITES Following HOTELS on TWITTER 0% 10% 20% 30% 40% 50% 60% 70% 80% Spring 2012 Hotel Performance Study Representative sample of 5000 travelers 27

28 Take Away A good social media strategy is more complicated than just attracting young people 28

29 Online Dominates Hotel Reservation Channels 29

30 U.S. Hotel Room-Nights in Millions REALITY Chain Websites Dominate 2011 Hotel Reservation Channels (Reported by Guest) Reservations via mobile phone apps are less than 1% of all room-nights in 2011 Chain Website Corporate Travel Dept # 100 Other Websites 50 Travel Agent

31 OTA Market Has Lots of Players, Expedia Currently Leads the Pack 2011 Hotel Reservation Channels (Reported by Guest) Other travel website* Online Travel Agent/OTA Expedia Hotel Chain Web/App Priceline Travelocity Orbitz *Includes Hotels.com 31

32 Take Away For Hoteliers, Balanced Channel Management is Critical as the Market Changes 32

33 Everything Is Going Mobile 33

34 Accessing Maps is the #1 Travel Planning Use for Mobile Phones Travel Planning Activities performed on Smartphone/iPad 26% Access maps 34

35 Accessing Maps Remains #1 Use; 8% Downloaded a Hotel App Travel Planning Activities performed on Smartphone/iPad Access maps 26% Download a destination specific app Download and redeem coupons Download an airline app Download a hotel app 8% Download a meta-search travel app (e.g. Kayak) Download a car rental app 0% 10% 20% 30% 35

36 GenX - Stronger Users of Travel Apps Travel Planning Activities performed on Smartphone/iPad Access maps Download a destination specific app Download and redeem coupons Download an airline app Download a hotel app Boomer GenX Millennial Download a meta-search travel app (e.g. Kayak) Download a car rental app 0% 10% 20% 30% 40% 36

37 Besides Booking a Hotel Room, Guests Use Hotel Apps to What did you use the hotel application for? To book a hotel room To view existing room To access loyalty To modify existing room To cancel existing room To check-in at a hotel To pay a hotel bill To check-out at a hotel To set a parking reminder 0% 20% 40% 60% 80% 37

38 Take Away Mobile and the Use of Apps is Small, Evolving, and Fragmented When Planning App Strategy Consider the Hassle of Too Many Apps 38

39 Young People Are Naive 39

40 U.S. Hotel Room-Nights in Millions REALITY Millennial Demand Increasing Fastest Followed by Boomers; GenX Is Slowing Generations* by U.S. Domestic Hotel Room-Night Demand 400 Boomers (age 48-66) 300 GenXers (age 32-47) 200 Millennials (age <32) 100 Silent/GI (age 67+) F 2013F *Age as of January 1, 2012 D.K. Shifflet & Associates, Ltd. 40

41 No Single Generation Will Dominate in 2020 U.S. Room-Nights by Generation 100% 12% 2% 75% 33% Silent/GI (DOB Pre 1946) 42% Boomer (DOB ) 50% 32% GenX (DOB ) 25% 32% 33% Millennial (DOB ) 14% 0% D.K. Shifflet & Associates, Ltd. 2011RN 2020RN 41

42 Millennials Are More Critical % Rating the Value of their Hotel Experience 9-10 on 1-10 scale 55% 45% Boomer Gen X Millennial 35% Prelim D.K. Shifflet & Associates, Ltd. 42

43 Take Away Younger Generation Has Raised the Bar for Hoteliers Need to Deliver: 1. Technology that Works and 2. Good Value Satisfying Their Needs Will Benefit All D.K. Shifflet & Associates, Ltd. 43

44 Thank you! Chris Klauda VP Lodging Services D.K. Shifflet & Associates, Ltd. 44