Online Travel Services: Changing Consumer Behavior

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Online Travel Services Changing Consumer Behavior
Emily Becher Category Development Officer, Travel
ServicesYahoo!, Inc.
October 28th, 2005
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Executive Summary

• Broadband Faster, better experience
• Outcome Migration in consumer travel activities
• Marketing Online media drives attitudes and
  behavior

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Internet Change

• 58 first heard about a travel fare / promotion
  through the Internet
• 70 of those who followed up on that
  fare/promotion, researched it on the Web
• Over 50 agree that the Internet held the
  greatest influence on them, in making their most
  recent travel purchase.
• 48 found the website they visited to research
  the travel product through search

Source Doubleclick Touchpoints,, March 2004
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Broadband made these changes more pronounced

• 32

How frequently do you visit travel sites?
BB users are 37 more likely to be frequent
online travel shoppers than dial-up users.
Broadband users are 32 more likely to say the
Internet is EXTREMELY important to them when
researching travel.
69
Broadband users are 69 more likely to say the
Internet is EXTREMELY important to them when
booking travel.
Source Its a Broadband Life. Study fielded by
Headlight Vision and Forrester Research.
Commissioned by mediaedgecia and Yahoo! Inc.
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Broadband Users are Much More Active Online
HOME USAGE PER MONTHBroadband Vs. Dial-up
2330Pages
23.8Hours
16.3Days
13.3Days
15.2Hours
1217Pages
Broadband
Broadband
Broadband
Dial-up
Dial-up
Dial-up
PAGES PER PERSON
TIME PER PERSON
USAGE DAYS PER PERSON
Source Comscore Media Metrix, January 2005.
Total US Internet Population.
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The New Internet
Online

• With broadband access, consumers incorporate the
  Internet more deeply into their daily lives.
• Look book has been replaced with a continuous
  travel planning cycle.

Source Its A Broadband Life, Yahoo!
mediaedgecia
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How Do Travel Consumers Now Use the Web?
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Travel Planning BehaviorThere is a great
opportunity to engage the consumer beyond the
booking event
Planning
Time
1. Ideation (destination / type of trip)
3. Discuss options
2. Research destinations / activities
8. More activity research
4. Research price / feasibility
9. Research hotels
12. Print list of activities to consider while
on trip
5. Debate options decide on destination
10. Compare hotels, read reviews
6. Compare air fares
11. Book hotel
13. Book activities
7. Book flight
14. Resources while on trip maps,
transportation, restaurants, phone numbers
Session 1 Session 2 Session 3 Session 4 Session
5 Session 6
15. Share experience photos, ratings reviews
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Inspiration Available OfferingsEmail
Discoveries growing means of consumer inspiration.
Inspiration
Multimedia coverage of expeditions and
discoveries with interactive components,
community emphasis, and sticky media.
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Travel SearchThe nature of queries changes as
research progresses
Research
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Asked what do travel searchers click on?
Research
Supplier and Generic clicks are also most
prevalent during the research process across our
347 supplier/agency sites. Destination clicks
more than double deep in the process
Search Share by End Term
Search Share by Start Term
Search Share Full Buy Cycle
Total U.S. Travel Searchers, June 2005 Across
347 Supplier/Agency Sites as defined by ComScore
Media Metrix
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How do travel searchers refine?
Research
Consumers are most likely to refine within their
start category. There is some propensity for
those that start with agency to refine to
supplier term types
Refinement Term Type Activity
What they Start with
Agency
Destination
Supplier
Generic
Total U.S. Travel Searchers, June 2005 Across
347 Supplier/Agency Sites as defined by ComScore
Media Metrix
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Research - GuidesTravelers are looking for sites
to provide them with additional content to aid in
the decision making process
Compare
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Transaction Activity As A Proportion Over 8
Weeks
Buy
More than a third of search influenced
transactions occur from weeks 5 through 8, which
may be the result of a second transaction
Key Fact A travel searcher will average 1.8
transactions an 8-week period
36 occur from Week 5 to 8
Total U.S. Travel Searchers, June 2005 Across
347 Supplier/Agency Sites as defined by ComScore
Media Metrix
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Make your reservation Online / Offline?
Buy
Travel reservations continue to take place
offline. For example, two in ten online
searchers decided to purchase hotel rooms
offline.
Made Purchase Offline Made Purchase Online
Base (Purchased the Following Travel Services)
Hotels (305) Airline Tickets (209) Car Rental
(100) Packages (68) Cruises (32!) Train/Rail
Tickets (18!) Q9 For each travel service that
you did purchase, where did you make your
purchase? ! CAUTION Small Base Sizes
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Therefore.
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Insights Actions
Broadband a faster, better experience
Create Services that bring experience to customer
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Marketing Initiatives
Bring Experience to Right Customer
Live Vegas from Home in LA