Travel Flash Report. Winter 2018

Transcription

1 Travel Flash Report Winter 2018

2 Summary Key Takeaways Mobile Trends in Travel Cross-device and Last-minute Behavior Focus on Apps Seasonality Appendix 2

3 Key Takeaways Criteo s deep dive into travel data reveals 7 key takeaways: 1. Mobile is still growing steadily, especially for Online Travel Agencies. 2. Tablet usage keeps declining across all travel categories. 3. Combining booking data can help make up for lower mobile performance. 4. Up to 80% of last-minute bookings are made on mobile devices. 5. Mobile is the majority for travel advertisers with a booking app. 6. App sees slightly more booking dollars per transaction than mobile web. 7. The conversion rate on app is 5 times higher than on mobile web. 3

4 Share of Bookings by Device Most travel categories generate more than one-third of bookings on mobile devices.* Smartphone Tablet Activities Air Apartments Car Cruise Ground Hotel Packages Rail Desktop 66% 78% 67% 60% 56% 65% 61% 68% 86% 9% 13% 7% 22% 5% 6% 4% 25% 5% 17% 20% 33% 23% 30% 33% 28% 6% 7% Total Mobile 34% 22% 33% 40% 44% 35% 39% 32% 14% YoY Variation -3pts +2pts +4pts +10pts +1pt +6pts +10pts +6pts -3pts *Share of bookings by device among travel advertisers, worldwide, Q Excludes apps and comparators. 4

5 45% Mobile accounts for 45% of bookings for OTAs.* *Share of bookings by device among travel advertisers, worldwide, Q Excludes apps and comparators.

6 Share of Bookings by Device Online Travel Agencies (OTAs) make the most of mobile bookings.* OTA Supplier Smartphone Tablet Desktop 55% 84% 6% 39% 6% 10% *Share of bookings by device among travel advertisers, worldwide, Q Excludes apps and comparators. 6 Key Takeaway As suppliers lag behind, OTAs get the most of mobile bookings

7 Variation of the Share of Bookings by Device Comparison between Q and Q * Smartphone Tablet Desktop Total Mobile Supplier 42% OTA 61% 70% 60% 50% 40% 30% 11% 20% -0.5% 0% 10% 0% -10% -15% -21% -19% -20% -30% *Share of bookings by device among travel advertisers, worldwide, Q Excludes apps and comparators 7 Key Takeaway OTAs grow quicker on Mobile Smartphone is growing steadily and tablet is declining

8 WORLDWIDE The share of mobile bookings ranges from 28 to 53% by region Smartphone Tablet Desktop North America 22% 6% 72% 33% 64% 3% Latin America Europe 25% 8% 67% 47% North APAC 3% 50% Middle East 55% 41% 4% 51% 44% 5% South APAC 8 *Detailed country list provided in Appendix. Share of bookings by device among travel advertisers, worldwide, Q Excludes apps and comparators. North America: 2 countries. Latin America: 9 countries. Europe: 25 countries. Middle East: 6 countries. APAC: 14 countries.

9 COMBINING DATA Cross-device data lets you understand what happens before booking* Share of bookings preceded by a click on another device: Key Takeaway 28% 32% Despite a lower share of mobile bookings, suppliers have a larger share of cross-device transactions, showing that data collaboration between companies could potentially help make up for lower mobile performance. Online Travel Agencies Suppliers 9 *Share of bookings by device among travel advertisers, worldwide, Q Excludes apps and comparators. Bookings following a click on a Criteo ad. Excludes apps and comparators.

10 Share of mobile booking by time to departure For main travel categories, the majority of last-minute bookings are made on mobile: Share of Mobile Bookings, Days to Travel, By Travel Sub Category 80% 72% 49% 54% 46% 41% 38% 37% 31% 33% 30% 30% 35% 21% 20% 23% 16% 14% 13% 16% Key Takeaway Up to 80% of last minute bookings are made on mobile devices > 3 months 1-3 months 1-4 weeks 1-7 days Air Apartment Hotel Packages <24h 10 Source : Criteo Data, worldwide, Q Online travel agencies and suppliers. Excludes comparators and applications.

11 60% Travel players with a booking app make 60% of transactions on mobile devices. *Share of bookings by device, apps included, worldwide, Q

12 Focus on Apps Apps help make the difference in transactions. Mobile Web App Desktop Share of Bookings by Environment, for travel players with a booking app, worldwide. Share of Bookings by device, all travel players, excluding apps, worldwide. 40% 33% 35% 27% 65% *Criteo data, Worldwide, Travel advertisers, Q4 2017, apps included. 12 Key Takeaway Travel players with a booking app make 60% of transactions on mobile devices, up from 41% one year ago.

13 41% Apps account for 41% of last-minute traffic.* Source: For travel advertisers who generate bookings on both mobile web and in-app. Criteo, worldwide, Q

14 Focus on Apps Share of traffic by browsing environment for last-minute bookings. Mobile Web App Desktop 11% Key Takeaway 41% of last minute traffic and touchpoints are made on apps. 89% are made on mobile devices. 48% 41% 14 Source: Criteo Data, worldwide, Q Online travel agencies and suppliers with a booking app. Last-minute bookings are made less than 24h before check-in or departure.

15 Focus on Apps Share of traffic by browsing environment by number of nights, for hotel players with a shopping app: Mobile Web App Desktop 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Key Takeaway 33% of one-night stays are searched on Applications % Source: Criteo Data, worldwide, Q Online travel agencies and suppliers with a booking app. 15

16 Focus on Apps Travel Advertisers see much higher conversion rates on apps more than in retail* - and more than ever. Mobile Web App Desktop Travel, Q % 23% 11% Travel, Q % 22% 13% YOY -3pts +1pt -2pts *Criteo Data, worldwide, Q and Q CR = Buyers / Product Page Viewers. Online travel agencies and Travel Suppliers. Excludes comparators. In Q4 2017, the average conversion rate on app for retailers is 17% worldwide, for comparison. 16 Key Takeaway The conversion rate on apps is 5x higher than on mobile web, and the difference keeps growing.

17 Focus on Apps Average Booking Value per browsing environment, when 100 is spent on desktop (index) Key Takeaway App remains behind desktop in terms of average booking value, but it sees slightly more booking 60 dollars per transaction than 50 mobile web Mobile Web App Desktop Source: Criteo Data, worldwide, Q Online travel agencies and Travel Suppliers. Excludes comparators. 17

18 65% Travel generates up to +65% daily bookings in Q1.* *Criteo Data, US, January 2017 compared to average in November Excludes comparators.

19 Appendix Seasonality - Winter bookings in the US. Key Takeaway The booking season is just getting started. In Q1, Travel generates up to +65% daily bookings compared to average in November 19 Source: Criteo Data, US, Excludes comparators.

20 Appendix Seasonality - Winter bookings in the UK. Key Takeaway The booking season is just getting started. In Q1, Travel generates up to +80% daily bookings compared to average in November 20 Source: Criteo Data, UK, Excludes comparators.

21 Appendix 21 Share of Bookings by Device, for select countries and regions.* Country Desktop Smartphone Tablet Total Mobile Japan 54% 41% 5% 46% Canada 56% 37% 7% 44% Sweden 59% 32% 9% 41% France 61% 33% 6% 39% Spain 62% 31% 6% 38% Australia 63% 28% 9% 37% Brazil 63% 34% 3% 37% Denmark 64% 23% 13% 36% United Kingdom 65% 25% 10% 35% Netherlands 67% 22% 11% 33% Austria 68% 25% 7% 32% Switzerland 69% 25% 6% 31% Italy 70% 25% 5% 30% Belgium 72% 20% 8% 28% United States 72% 21% 6% 28% Germany 77% 15% 8% 23% Region LATAM 64% 33% 3% 36% North America 72% 22% 6% 28% North APAC 55% 41% 4% 45% South APAC 51% 44% 5% 49% Middle East 47% 50% 3% 53% Central Europe 75% 18% 7% 25% Northern Europe 65% 25% 10% 35% Southern Europe 64% 30% 6% 36% *Share of bookings by device Among Travel Advertisers, worldwide, Q Excludes apps and comparators.

22 Methodology Individual browsing and booking data analyzed: Over 1,800 Travel advertisers globally. More than 3b bookings per year across desktop, mobile sites and applications. 59 countries in North America (2), Latin America (9), Europe (25), Middle East (6), Africa (4) and APAC (14). How can marketers use this data? Benchmark your performance on relevant KPIs for your mobile browser, mobile app and cross-device channels. 22

23 Thank you To learn more about how the Criteo Commerce Marketing Ecosystem drives sales and profits for thousands of brands, retailers, and publishers worldwide, visit criteo.com/about.