Attracting the European Market by Richard Singer - Press

APPEALING TO THE EUROPEAN TRAVELLER
RICHARD SINGER
www.travelzoo.com
1
AGENDA
+ Arabian Travel Market survey findings
+ European travel trends
+ Information sources and the impact of mobile
+ Channel selection and case studies
www.travelzoo.com
2
TRAVELZOO
A leading publisher of travel, entertainment and local deals.
About Travelzoo
25 offices in 11 countries and 3 continents
NASDAQ listed: TZOO
Founded in 1998
Audience
Website statistics
Social and mobile
27 million subscribers worldwide
108 million unique visitors
1.6 million global Facebook likes
6.9 million European subscribers
worldwide
Over 3m app downloads
www.travelzoo.com
3
THE TRAVELZOO PROCESS
Tailored solutions
A quality audience
A trusted process
Our cohesive mix of advertising
We deliver an affluent and
We spend 1000+ hours each
solutions stimulates and captures
enthusiastic audience who
week researching, checking and
demand through email, search
respond to deals with
validating deals to ensure reliable
and online channels
incremental purchases
content for our subscribers and
the best ROI for our advertisers
www.travelzoo.com
4
WE TARGET EVERY GEOGRAPHIC LEVEL
LOCAL
Local Deals
DRIVE MARKET
Travelzoo Getaways & NewsflashTM
COUNTRY WIDE
Top 20® & NewsflashTM
GLOBAL
Top 20® & NewsflashTM
27 million subscribers worldwide
www.travelzoo.com
5
ARABIAN TRAVEL SURVEY
Source: Travelzoo EU Survey April 2014; Surveys administered by Travelzoo Sales Operations department using Question Pro survey tool.
Sample picked at random. No incentives, n=3,440
www.travelzoo.com
6
HOW MANY HAVE BEEN TO THE REGION FOR A HOLIDAY
OR BREAK?
80%
70%
71%
70%
63%
60%
55%
50%
45%
Yes
40%
No
38%
30%
31%
30%
20%
10%
0%
UK
www.travelzoo.com
DE
FR
7
ES
THIS IS WHERE THEY HAVE BEEN
UK
DE
70%
35%
60%
30%
50%
25%
40%
20%
30%
15%
20%
10%
10%
5%
0%
0%
ES
FR
60%
70%
50%
60%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
www.travelzoo.com
8
FOR THE PEOPLE WHO HAVE BEEN THIS IS HOW THEY
DESCRIBE DUBAI
www.travelzoo.com
9
AND THE PEOPLE WHO HAVEN’T BEEN
www.travelzoo.com
10
THE GOOD NEWS, MANY WILL RETURN TO THE REGION
AGAIN
90%
83%
80%
78%
70%
70%
64%
60%
50%
Yes
No
40%
36%
30%
30%
20%
22%
17%
10%
0%
UK
www.travelzoo.com
DE
FR
11
ES
AND THEY WOULD RECOMMEND IT TO FAMILY AND
FRIENDS
UK
DE
30%
30%
70%
Yes
70%
No
Yes
ES
No
FR
17%
34%
66%
83%
Yes
www.travelzoo.com
No
Yes
12
No
BUT FOR THOSE THAT HAVEN’T BEEN, THEY WILL TAKE
SOME CONVINCING
80%
70%
69%
65%
60%
58%
54%
50%
46%
40%
Yes
42%
No
35%
30%
31%
20%
10%
0%
UK
www.travelzoo.com
DE
FR
13
ES
AND THESE ARE THE REASONS WHY…
80%
UK
DE
FR
ES
70%
60%
50%
40%
30%
20%
10%
0%
Cultural
differences
www.travelzoo.com
Language barrier
Climate
Safety
14
Unsure what it has
to offer
Too expensive
Lack of appeal
WHERE WOULD YOU CONSIDER GOING TO IN THE
FUTURE?
UK
DE
FR
70%
60%
50%
40%
30%
20%
10%
0%
Abu Dhabi
www.travelzoo.com
Bahrain
Dubai
Egypt
Israel
15
Jordan
Lebanon
Oman
Qatar
ES
DO YOU CONSIDER DUBAI TO BE A FAMILY-FRIENDLY
DESTINATION?
UK
DE
28%
39%
61%
72%
Yes
No
Yes
ES
FR
33%
34%
66%
67%
Yes
www.travelzoo.com
No
No
Yes
16
No
GREAT COVERAGE IN THE UK
www.travelzoo.com
17
WHAT DO CONSUMERS WANT/EXPECT FROM A HOLIDAY
IN THE REGION?
49.58%
58.31%
A cultural experience (ie. visiting historic sites)
75%
54%
16.53%
28.99%
A sun, sea and sand experience
63%
54%
11.44%
14.66%
18%
A twin-centre break using a Middle-Eastern destination
as a stopover
25%
9.32%
14.66%
A city break
34%
22%
22.46%
29.32%
Desert safari
ES
FR
DE
UK
42%
19%
7.63%
7.17%
A shopping experience
24%
19%
8.05%
7.17%
13%
12%
2.97%
7.17%
3%
5%
Water-sports ie diving in the Red Sea
Sporting events (ie. Grand Prix/World Cup)
0%
www.travelzoo.com
10%
18
20%
30%
40%
50%
60%
70%
80%
WHAT IS THEIR TOP WINTER SUN HOLIDAY
DESTINATION?
42%
29%
The Canary Islands
52%
48%
12%
15%
The Balearic Islands
12%
16%
13%
ES
28%
Other
FR
DE
14%
12%
16%
15%
North Africa
10%
15%
16%
14%
Arabian Peninsula
13%
8%
0%
www.travelzoo.com
10%
20%
30%
19
40%
50%
60%
UK
BROADER MESSAGING AND DEEPER CONTENT
www.travelzoo.com
20
WORD OF MOUTH AND TESTIMONIALS WORK
www.travelzoo.com
21
THE EUROPEAN TRAVELLER
www.travelzoo.com
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CONSUMER TRENDS
TRAVEL BEHAVIOR IN SPRING AND SUMMER 2014
+
Germany and the UK lead the recovery in Europe
+
Last year the percentage of adults who took a holiday grew to well over 70%, up 4% YoY
+
Spend increased considerably in 2013 with the average rising to €3,000
+
German travellers are holidaying for longer with 47% over 1 week compared to 39% in the UK
+
The UK are the most frequent travellers (3.5 trips)
+
France, Spain and Italy lag well behind the UK and Germany. Frequency is in decline YoY and
average spend at €2,400
+
International vacations for German and UK travellers is growing significantly. Germany grew from 14%
to 17% and UK from 15% to 17%
+
The majority of German vacations are packages
www.travelzoo.com
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FAMILY TRAVEL IS IMPORTANT AND GROWING FOR
THE UK MARKET
70
60
50
40
2011
30
2012
2013
20
10
0
DE
UK
DE
UK
Travel with one adult Travel by yourself
or another as a
couple
www.travelzoo.com
DE
UK
DE
UK
DE
UK
DE
UK
Travel with family Travel with friends or Travel with adult Travel as part of an
including children
a group of people family (no children) organised group/tour
(<18 years old)
24
GERMAN TRAVELLERS LIKE IT HOT…
Key factors when selecting an international destination
Climate
Prior experience (enjoyed a previous trip there)
Price of hotel/lodging
Cultural attractions (e.g. museums, historical landmarks)
Appeal of hotel/lodging amenities
Available activities (e.g. snorkelling, swimming, gaming)
Price of airline ticket
Affordability of dining/shopping
Recommendation by friends/family
Fit with travel dates
Other
Proximity
Special event such as a concert
0
www.travelzoo.com
10
25
20
30
40
50
60
…SO DO THE BRITISH BUT THERE ARE OTHER
CONSIDERATIONS
Key factors when selecting an international destination
Climate
Prior experience (enjoyed a previous trip there)
Cultural attractions (e.g., museums, historical landmarks)
Price of airline ticket
Price hotel/lodging
Available activities (e.g., snorkeling,skiiing, gaming)
Recommendation by friends/family
Fit with travel dates
Appeal of hotel/ lodging amenities
Affordability of dining and shopping
Other
Special event, such as concert or sporting event
Proximity
0
www.travelzoo.com
10
26
20
30
40
50
60
INFORMATION SOURCES AND THE IMPACT OF MOBILE
www.travelzoo.com
27
HOW WOULD EUROPEAN TRAVELLERS PREFER TO
BOOK THEIR TRAVEL TO A MIDDLE EAST DESTINATION?
UK
DE
37%
33%
5%
4%
63%
58%
ES
FR
43%
40%
3%
3%
57%
54%
I would book via a travel agent or tour operator
I would self-package i.e. book my own flight and own hotel
Other
www.travelzoo.com
28
GERMAN TRAVELLERS HAVE A HIGH DEPENDENCY
ON PRINT RECOMMENDATIONS AND ADVICE
www.travelzoo.com
29
WHICH SOURCES DO UK TRAVELLERS TURN TO?
100%
80%
60%
60%
40%
45%
37%
31%
20%
11%
10%
7%
6%
Other
Social media
0%
Tripadvisor
www.travelzoo.com
Family/friends
Online travel
agents
Guide books
30
Traditional
media
Listings and
entertainment
guides
OVER 50% OF UK CONSUMERS USE REVIEWS
DURING THE SELECTION AND BOOKING PROCESS
www.travelzoo.com
31
THE SHIFT TO MOBILE PLATFORMS
Tablets will play an increasingly important role as worldwide
consumer spending via mobile jumps from $204 billion in 2014 to
$626 billion in 2018, according to Goldman Sachs. 535 million
consumers across the globe will make a purchase via mobile this
year, the firm says.
* Goldman Sachs
www.travelzoo.com
32
THE SHIFT TO MOBILE PLATFORMS
4%
4%
Travelzoo Europe
16%
Desktop
www tablet
www mobile
2%
57%
Mobile web
iPhone app
17%
www.travelzoo.com
Android app
33
TRAVELZOO MOBILE
1200
1000
Thousands
800
600
400
200
0
Q1
Q2
Q3
2011
45%
of total traffic is via
mobile devices
www.travelzoo.com
Q4
Q1
Q2
Q3
2012
3,000,000+
app downloads
34
Q4
Q1
Q2
Q3
2013
Q4
Q1
2014
1 sale every 1.5 minutes
on mobile
MOBILE PENETRATION IS GROWING
2011
2012
2013
2014
2015
France
3%
7%
10%
14%
18%
Germany
2%
6%
9%
13%
18%
Italy
1%
4%
9%
14%
20%
Scandinavia
2%
5%
8%
13%
17%
Spain
2%
6%
9%
13%
17%
UK
5%
8%
13%
16%
21%
Total Europe
3%
6%
11%
15%
20%
(Source: Phocuswright EU Consumer)
www.travelzoo.com
35
ARE TRAVEL COMPANIES EMBRACING THIS?
Only 24 of the top 50 UK travel
companies have a mobile
optimized website
Only 26 of top 50 UK travel brands
have an app, 14 are transactional,
3 also have tablet apps
16 of the top 50 UK travel
companies have no mobile
presence at all
Source: IAB – November 4, 2013
www.travelzoo.com
36
THIS IS HOW IT LOOKS TO THE CONSUMER
www.travelzoo.com
37
37
OWN THE END TO END BOOKING PROCESS
www.travelzoo.com
38
IN DESTINATION MARKETING
www.travelzoo.com
39
CLEAR TRENDS OF SMARTPHONE USAGE
Hotels
Restaurants
‘65% of same-day hotel reservations are made
from a smartphone’
‘41% of UK travellers research local activities
such as restaurants and shows on their
smartphones’
(Source: Hotel Marketing.com)
(Source: Phocuswright EU Consumer)
www.travelzoo.com
40
CHANNEL SELECTION AND CASE STUDIES
www.travelzoo.com
41
THE WHAT, WHERE AND WHEN
1. I know which hotel and place I want
2. I know where I want to go but not where I want to stay
3. I don’t know where I want to go, I just want to go somewhere
4. I'm not even thinking about going anywhere just now
www.travelzoo.com
42
THE FLEXIBLE EUROPEAN TRAVELLER
The states of leisure consumer
100% Capacity
Search, Metasearch, OTA, GDS, etc.)
Demand Curve
Capturing demand:
Pull Marketing
Travellers have already
selected their destination and
are now shopping for flights
and hotels
Travellers don’t
know where they are
going and can be
inspired to visit
(Email marketing,
travel content sites)
Creating demand:
Push Marketing
www.travelzoo.com
43
THE FLEXIBLE EUROPEAN TRAVELLER
The states of leisure consumer
FLEXIBLE
50%
are totally flexible as
to when they travel
WORLDLY
50%
are inspired by Travelzoo
deals to take a leisure trip
SPONTANEOUS
66%
have no preference as to
which time of year they travel
www.travelzoo.com
44
CASE STUDY
A luxury Dubai trip sold over 400 room nights
THE CAMPAIGN
THE OBJECTIVES
+ £639 for a three night package at
Atlantis, The Palm with return flights,
breakfast, dinner and a room upgrade
+ Encourage longer length of stay by
upselling to room nights
+ Expand client base to a new audience of
affluent consumers who are ready to book
www.travelzoo.com
45
CASE STUDY
www.travelzoo.com
46
CASE STUDY
A £699 Dubai cruise generated over 100 passengers
THE CAMPAIGN
THE OBJECTIVES
+ £699 for a seven night cruise to Dubai,
Oman and Abu Dhabi
+ Upsell to balcony and outside cabins
+ Included return flights, free onboard
spend of £100 and airport transfers
+ Upgrade passengers to all-inclusive
board
+ Fill capacity on key dates
+ Various departures between November
and January
www.travelzoo.com
47
CASE STUDY
Emirates: luxury holiday at newly opened 5-star hotel
THE CAMPAIGN
THE OBJECTIVES
+ 799 € five night package in new 5-star
hotel Ajman Saray with sea view room,
half board and flights
+ Increase room occupancy of a new hotel
with plenty of availability
+ For a one week stay, the package costs
999 € per person
+ Promote the new property
+ Cross-sell one week stay to generate
additional revenue
+ Valid for travel in February & March
2014
www.travelzoo.com
48
CASE STUDY
OBJECTIVES
+ Brand Abu Dhabi as leading leisure
travel destination
+
Stimulate visits to the destination
+ Support trade partners in each market
REACH
30.1 million in total exposure
+ Users spent 2.13 minutes on page
+ User engagement drove:
2,276+ hour in total viewing time
= 273,120 thirty second TV spots
BRANDING RESULTS
+ Flight searches increased by 412%
compared to the previous year
+ 406% increase YoY searches for
Abu Dhabi on Travelzoo
TACTICAL FEEDBACK
“We have received several enquires for Abu
Dhabi due to Travelzoo’s promotion and there
is an increased interest in Abu Dhabi. We
definitely would like to participate in this
promotion again”
Deputy Managing Director of Orient FlexiPax
ADTA Trade Partner
www.travelzoo.com
49
SUMMARY AND CONCLUSIONS
The four states of leisure consumer
•
European travel is on a recovery, especially in the UK and Germany
•
There is a growing propensity with the major markets in Europe to visit the region and
return.
•
Suppliers and Tourism Boards will have to be innovative and persistent to break through
some of the challenging perceptions that still exist.
•
Content marketing, demographic targeting and broader communications directly to the
consumer or via trade partners is essential to gain market share. Word of mouth should
be encouraged and rewarded.
•
There are some specific nuances with each of the European markets with how they
travel, what they expect and which sources they refer to for inspiration, advice and
confirmation.
•
Mobile footprint is critical to gain share and to differentiate during all phases of the
research and booking process and in-destination.
•
There is high fragmentation of distribution within Europe. Suppliers should use them to
attract customers in different states of propensity to travel.
www.travelzoo.com
50
Richard Singer
Managing Director, Europe
[email protected]
Visit our trade microsite http://solutions.travelzoo.com/uk/
www.travelzoo.com
www.travelzoo.co.uk
51