Engaging Travelers In

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Engaging Travelers In Not as Bad Times

• Diane Clarkson, Analyst

October 1, 2010
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The things we fear most in organizations
fluctuations, disturbances, imbalances are the
primary sources of creativity. Margaret J.
Wheatley President Emeritus of The Berkana
Institute
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Agenda

• Update on the economy and travel industry
• The role the Web and technology plays in travel
  planning
• Five ways to ensure successful digital engagement

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Update on the economy and the travel industry
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Travelers remain financially cautious but there
are hints of optimism
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Compared to 2008, US online travelers are...
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More likely to buy products only on sale
More likely to shop at discount stores
38
45
Use credit/debit cards less to buy products
Use coupons more now to buy products
Base US online leisure travelers
Source North American Technographics Travel
Online Survey, Q4 2009
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Travelers remain steadfast in their
budget-focused ways
Percent who agree with the following statements
(answer 4 or 5 on 5-point scale)
Base US online leisure travelers
Source North American Technographics Travel
Online Survey, Q1 2008 North American
Technographics Travel Online Survey, Q1 2009
North American Technographics Travel Online
Survey, Q1 2010
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Leisure travelers say value, reliability, and
experience are equally important to price
May 2010 Why Travel eBusiness Misses The Mark By
Only Emphasizing Price
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Were starting to see signs of life from
travelers focused on quality
Percent who agree with the following statements
(answer 4 or 5 on 5-point scale)
Base US online leisure travelers
Source North American Technographics Travel
Online Survey, Q1 2010 North American
Technographics Travel Online Survey, Q1 2009,
North American Technographics Travel Online
Survey, Q1 2008 North American Technographics
Travel Online Survey, Q2 2007
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Today's new frugality is evolving into neoFrugal
Chic

• Saving as a point of pride
• Every major purchase is heavily researched and
  considered
• Travel as a reward, not an entitlement

Source Google Images
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The role the Web and technology plays in travel
planning
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Extensive consumer online adoption makes digital
strategy mandatory
Base US households
Source The State Of Consumers And Technology
Benchmark 2009, US
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3 out of 5 US online leisure travelers buy at
least some travel online
January 2010 US Online Leisure Travel Forecast,
2009 To 2014 The Plateau Is In Sight
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Travelers rely most on broad-based information
providers to plan their trips
Which type of Web site(s) did you use to
research LEISURE/PERSONAL travel?
(multiple responses accepted) Base US online
leisure travelers who research travel online
Source North American Technographics Travel
Automotive Online Survey, Q4 2009
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To book, leisure travelers focus on OTA and brand
Web sites
Which of the following have you used to actually
book LEISURE/PERSONAL travel in the PAST 12
MONTHS?
Base US online leisure travel Bookers (multiple
responses accepted)
Source North American Technographics Travel
Automotive Online Study, Q4 2009
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The way we consume media is changing

• 18-43 year olds spend more time online than
  watching TV
• Nearly half of Gen X and Gen Y were watching TV
  and using a computer
• Entertainment, research and purchase can occur on
  many screens
• Half of consumers trust ratings and reviews as a
  source of information

Source Forresters North American
Technographics Benchmark Survey, 2009
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New media has mass appeal
2 billion
150 million
400 million
gt30 million
212 million
Source comScore, February 2010 YouTube
,5/5/2010 FacebookInside company blog
,2/1/2010 allfacebook.com
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The social groundswell is growing
83
Conversationalists - 33
Creators - 13
Social Technographics
Critics - 19
Collectors - 15
Joiners - 19
Spectators -33
Inactives - 52
Source January 15, 2010, Introducing The New
Social Technographics Forrester report
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24 more US leisure travelers participate in
social media in 2010 than 2008
Base US online leisure travelers
Source Forresters North American
Technographics Travel Online Studies, Q1 2010,
Q1 2009, and Q1 2008
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Data chart on how leisure travelers are using
social media to research travel
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Six in 10 leisure travelers are technology
optimists
Six in 10 leisure travelers are technology
optimists
Percent who agree with the following statements
Technology is important to me 41 I like
technology 48
Technology is important to me 41
Base US online leisure travelers
Source North American Technographics Travel
Automotive Online Survey, Q4 2009
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Travelers can experience destinations before they
go making sure theyre getting their moneys
worth

• Technology like Googles Street View Trike
  revolutionizes travel planning
• Parks Trails
• Theme Parks Zoos
• Landmarks 

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9 of US online leisure travelers have watched
video content online specifically about travel
Source North American Technographics Travel, Q1
2009, Base US online travelers
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Devices are evolving its time to rethink mobile
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Substantial year-over-year increase in Smartphone
ownership among US travelers
Percent of travelers who own a Smartphone
Base US online business and leisure travelers
Source Forresters North American
Technographics Travel Online Study, Q1 2010 and
Q1 2009
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There are over 9,300 travel iPhone apps
Source Mobclix, Apple iTunes, Morgan Stanley
Research, Data as of 4/2010
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One in 10 leisure travelers have downloaded a
travel-related mobile app in the past year
Which of the following types of travel-related
apps (free or paid) have you downloaded to your
cell phone in the LAST 12 MONTHS?
Hotel, flight, and travel deals apps 18
Weather apps 59
City guide apps 18
Nearby restaurants movies apps 39
(multiple responses accepted) Base US online
leisure travelers who own a cell phone and have
downloaded a travel app
Source Forresters North American
Technographics Travel Online Survey, Q1 2010
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Five ways to ensure successful digital engagement
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5 ways to ensure successful digital engagement

• Provide relevant online information
• Leverage social media and sharing
• Gain customer insight
• Include mobile in your strategy
• Meet your customers desires for customer service
  options

• Provide relevant online information
• Leverage social media and sharing
• Gain customer insight
• Include mobile in your strategy
• Meet your customers desires for customer service
  options

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Make sure relevant content is easy to find
Percent who cite the following as having a
positive impact when making leisure travel
booking decisions
Base US online leisure travelers
Source Forresters North American
Technographics Travel And Automotive Online
Survey, Q4 2009
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Fix simple online content snafus
Which of the following problems have you
experienced when booking LEISURE travel online in
the PAST 12 MONTHS?
Base US online leisure travelers who have
experienced problems booking travel online,
(multiple responses accepted)
Source North American Technographics Travel
Automotive Online Study, Q4 2009
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Make sure your search ad/result takes users to
the relevant page on your Web site
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5 ways to ensure a successful digital strategy

• Provide relevant online information
• Leverage social media and sharing
• Gain customer insight
• Include mobile in your strategy
• Meet your customers desires for customer service
  options

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Use the POST methodology to determine the right
social media
People Assess your customers social activities
Objectives Decide what you want to accomplish
Strategy Plan for how relationships with
customers will change
Technology Decide which social technologies to
use
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Make it easy for people to share info about you
with their friends
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Cross promote your social efforts
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Make it easy for people to follow deals and
specials
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Social media can help bring people to your site
and extend your presence
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5 ways to ensure a successful digital strategy

• Provide relevant online information
• Leverage social media and sharing
• Gain customer insight
• Include mobile in your strategy
• Meet your customers desires for customer service
  options

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Travelers are comfortable sharing basic
information
"Please select the personal information from the
list below that you would be willing to share
with travel companies in order to receive
promotions and offers relevant to your travel
preferences."
Base US online leisure travelers
Source Forresters North American
Technographics Travel Automotive Online
Survey, Q4 2009
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Collect the information that makes most sense for
your business
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JetBlue loyalty members are asked travel
behavioral and personal interest questions
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5 ways to ensure a successful digital strategy

• Provide relevant online information
• Leverage social media and sharing
• Gain customer insight
• Include mobile in your strategy
• Meet your customers desires for customer service
  options

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Mobile content becomes increasingly important

• Immediacy
• Phone number
• Address
• Directions
• Operating hours
• Simplicity
• Context

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Consumers can connect almost anywhere at anytime
Which is rated bestby people in your network?
Which offers best-rated service?
Which is cleanest?
Which is rated best overall?
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Small brands still need a mobile strategy
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Text deals and information

• What time can we expect you?
• Were getting your room ready is there
  anything we can do to make your stay more
  comfortable?
• Want to get away this weekend? 89 per night
  deals!

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5 ways to ensure a successful digital strategy

• Provide relevant online information
• Leverage social media and sharing
• Gain customer insight
• Include mobile in your strategy
• Meet your customers desires for customer service
  options

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Data chart re customer service channels used and
desired among travelers
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Thank you

• Diane Clarkson
• dclarkson_at_forrester.com
• Twitter http//twitter.com/diane_clarkson
• Blog http//blogs.forrester.com/ebusiness_s
  trategy/diane_clarkson/index.html
• www.forrester.com