Understanding cross-border travellers in the online-tooffline

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1 Understanding cross-border travellers in the online-tooffline worlds

2 Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts Mark Twain

3 Why Humans are More Interesting When They Travel Travel exposes us to new experiences and with it an openness to try new things giving marketers a valuable window of opportunity convert When on holiday people are more open to new experiences & trying new brands and experiences 51% Agree they are more willing to try something new when travelling + Even on business trips we find ourselves obligated by our hosts to try new and unfamiliar brands In the name of commerce Travel is fatal to prejudice, bigotry, and narrowmindedness, and many of our people need it sorely on these accounts Mark Twain And sometimes we even enjoy it + Source: IntoTheBlue 2015 N=1000 (UK)

4 Contents The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

5 About the BDRC Group Founded 1991 Annual revenues of USD40m+ Research in 90 countries worldwide Offices in 6 countries Full service market research & business consulting firm Answering 7 key challenges where our insight helps inform better decisions: BDRC Continental London BDRC Americas Washington DC BDRC Asia Singapore & Indonesia BDRC Australia Sydney BDRC China Beijing Market opportunities & dynamics Customers experience & loyalty Brand communication & strategy Product development & pricing Channel development & innovation Audience engagement & perceptions Media Testing, ROI & planning Working with a range of travel industry stakeholders:

6 Cross-border travellers Unlocking the revenue opportunity

7 Cross-border travellers Unlocking the revenue opportunity

8 Big Data Cross-border travellers Unlocking the revenue opportunity Primary Data

9 Cross-border travellers Unlocking the revenue opportunity

10 Cross-border travellers Unlocking the revenue opportunity

11 Emotive Rational Cross-border travellers Unlocking the revenue Opportunity Rational Price Sensitive Highly Emotive Highly Convertible

12 Cross-border travellers Unlocking the revenue Opportunity Decision Reflection Opportunities

13 Consumer insight Is key to unlocking opportunities at 3 points in the consumer journey Well researched Relatively easy to reach Survey data Big data Traditionally hard to research Attractive conversion opportunity Very hard to research Highly attractive conversion opportunity

14 The Hotel Guest Survey (HGS) Southeast Asia The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

15 The BDRC Group Hotel Guest Survey (HGS) The definitive source of insight on hotel brand health and market dynamics (including booking pathways), conducted each quarter across 25 major travel demand origination markets Samples of business & leisure hotel guests representative of the hotel staying population Global view of hotel brand standing within its competitor set Reports enable clients to identify growth opportunity segments, based on size, fit with current distribution and current share Key insights on how travellers source information, select and book their hotel for each type of travel occasion

16 Survey samples Surveys conducted each quarter across 25 major travel demand origination markets, including 8 markets in Asia Pacific Asia-Pacific Samples China 2,400 Hong Kong 600 India 2,000 Japan 2,000 Australia 2,000 South East Asia (Singapore, Thailand, Malaysia) 2,400 TOTAL 11,400

17 What HGS Covers The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

18 Content of the survey Three distinct Insight Modules Brand Health Customer Needs & Perceptions Consumer Behaviour HGS Brand Ranking Index HGS Brand Margin Guest Priorities Brand Imagery Loyalty Booking Pathways Awareness & Familiarity Usage & Preference Price Premium OTAs and Disruptors Marketing Recall

19 Booking pathways Based around the HGS Booker Diary, which asks respondents about the steps they took for specific bookings Booking Pathways 01 When did you make the trip 02 Which country (countries) did you visit? 03 Which brand(s) did you use? 04 How many nights did you spend, and for what reason(s)? 05 Who made the reservation? 06 Which information sources did you consult? 07 Through which channel, and using which device, did you book? 08 How many alternative brands did you consider? 09 (Leisure only) How far in advance did you book this trip? 10 (Leisure only) How many travelled and what was the make-up of the group?

20 Booking Pathways: Asia Pacific The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

21 Key facts about booking pathways Non-digital methods of booking, e.g. telephone, have been in decline in the last 10 years as hotels shift emphasis to online, and as a result of the rise of Online Travel Agents (OTAs) Others, 39% Leisure trips Laptop Desktop 26% 37% Smartphone 22% Self booking, 61% Tablet Phone Other 3% 6% 5% Business trips Laptop 34% Others, 57% Self booking, 43% Smartphone Desktop Tablet 6% 26% 29% Phone 4% Based on number of individual stays booked by the traveler in Asia Pacific Source: BDRC Continental Hotel Guest Survey 2015) Other 2%

22 Leading digital channels for hotel searching OTAs rank equally high for leisure and business market, but consumers also search via 3 rd party sites, e.g. in the purchase path with flights and car hire. Social media and online advertising draws in a significant minority of the market into the purchase path Leisure stays Business stays Hotel website 27% Hotel website 25% Hotel review sites 25% Hotel review sites 25% OTAs Price comparison sites Travel forums Destination sites Hotel app Picture hosting sites 12% 8% 7% 6% 24% 23% OTAs Travel forums Hotel app Hotel online advertising Picture hosting sites 11% 8% 6% 6% 24% Hotel online advertising 5% Destination sites 6% Hotel social media feeds 5% Hotel social media feeds 5% Airline sites 5% Airline sites 5% Car rental sites 2% Based on number of individual stays booked by the traveler in Asia Pacific Source: BDRC Continental Hotel Guest Survey 2015) Car rental sites 2%

23 Cross-border travelers more inclined to use some digital channels 29% Hotel review sites 12% Destination sites 10% Hotel Apps 9% Online advertising 8% Social media feeds Based on number of individual stays booked by the traveler in Asia Pacific

24 Leading forms of leisure bookings While business travelers are more inclined to book direct from hotel websites, leisure travelers are as likely to book via OTAs 35% 34% Cross-border travelers: (10%) 6% 4% Hotel website Hotel app OTA / Metasearch 3rd party sites Traditional booking in decline: Hotel Central Reservation System (6%) Property level booking (5%) Traditional travel agent (4%) Based on number of individual stays booked by the traveler in Asia Pacific Source: BDRC Continental Hotel Guest Survey 2015)

25 China The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

26 Chinese Leisure Travellers: Key International Destinations & Occasions % Share of Chinese Outbound Leisure Nights CANADA 3.9% City break 10.8% 5.6% FRANCE City break JAPAN 1. City break 16.1% 2. Shopping trip TAIWAN 2.2% Local area / attraction City break USA 3.2% HONG KONG Shopping trip SOUTH KOREA 5.1% THAILAND City break 3.7% SINGAPORE 8% 17% 1. City break Beach resort AUSTRALIA 2. Shopping trip 1. Beach resort 2. City break Source: BDRC Continental Hotel Guest Survey 2015)

27 Market Demand Overview China Travellers Domestic Business Domestic Leisure 2,008 Million 2,027 Million International Business International leisure 301 Million 381 Million Adult Room Nights pa (Data collected in 2014) 50% Meetings / Events in same hotel 31% City Break 20% Visit Local Area 60% Meetings / Events in Same Hotels 30% City Break 20% Shopping trip 19% 44% 16% 53% 30% 15% 17% 31% 15% 18% Economy Mid Market 22% 15% 16% 14% 37% 36% UFS Luxury Top 5 Brands (Share of Nights %) Top 5 Brands (Share of Nights %) Top 5 Brands (Share %) Top 5 Brands (Share %) 11% 17% 8% 8% 8% 9% 7% 8% 7% 8% 6% 6% 6% 7% 6% 5% 5% 6% 4% 5% Source: BDRC Continental Hotel Guest Survey 2015)

28 The Path to Purchase: Summary Leisure Share of Stays(%) Information Booking Device No. brands considered Chinese staying for leisure in China Chinese staying for leisure abroad International travellers staying for leisure in China Hotel review sites 26% Hotel website 32% Smartphone 41% Hotel Website 24% OTAs 15% Desktop 27% Price comparison site with travel/hotel 22% ANY HOTEL CONTROLLED CHANNEL 56% Hotel review sites 30% Hotel website 40% Laptop/ Notebook/ Portable PC Desktop 21% 32% OTA 24% OTAs 16% Smartphone 32% Hotel Website 28% ANY HOTEL CONTROLLED CHANNEL 62% Laptop/ Notebook/ Portable PC 20% OTAs 28% Hotel website 33% Desktop 39% Hotel review sites 28% OTAs 26% Hotel Website 27% ANY HOTEL CONTROLLED CHANNEL Laptop/ Notebook/ Portable PC 28% 46% Smartphone 16% Average: % 29% 25% No others considered Average: 2.5 Average: % % 27% 25% 20% No others considered 35% No others considered % 26% 13% Inbound data is based on all data collected across all Q3 HGS markets, It has not been weighted to be representative of all inbound travel to China so should be treated as indicative only Source: BDRC Continental Hotel Guest Survey 2015)

29 Booking Lead Times Leisure Stays Chinese Domestic Chinese Outbound International Inbound More than 6 months months 3-4 months 2-3 months 1-2 months 1 week up to a month Less than 1 week 1 Inbound data is based on all data collected across all Q3 HGS markets, It has not been weighted to be representative of all inbound travel to China so should be treated as indicative only Source: BDRC Continental Hotel Guest Survey 2015)

30 Chinese Leisure Travellers: Key Travel Occasions % Share of branded hotel nights by leisure occasion In hotels in China In hotels abroad Lead international destinations Local area / attraction 20% 13% Hong Kong Visiting friends 8% 2% Hong Kong Activity and adventure 7% 9% USA Beach and resort 12% 19% Hong Kong City break 31% 30% Hong Kong Special treat 4% 4% Russia Shopping trip 11% 20% Russia A C B Stopping En Route 3% 1% Malaysia/Russia/Singapore/Thailand Party / function 2% 1% India/Russia/Singapore/Thailand Sports 1% 1% Hong Kong Source: BDRC Continental Hotel Guest Survey 2015)

31 Homestay Websites Awareness and Usage Business Travellers Leisure Travellers Tujia 25% 57% Tujia 24% 57% HomeAway 24% 55% HomeAway 25% 56% Airbnb 21% 52% Airbnb 22% 54% Owners Direct 17% 46% VRBO (Vacation Rental by Owner) 19% 50% onefinestay 16% 45% onefinestay 19% 50% VRBO (Vacation Rental by Owner) 16% 43% Owners Direct 19% 49% Aware and have used Aware Aware and have used Aware Tujia, a vacation rental site which has been in market for four years and is reportedly valued at $1bn, offers Airbnb-like services, but with services specifically tailored to the requirements of a Chinese audience. HGS data reveals a close battle between Tujia and HomeAway for leadership on brand awareness and usage, with Airbnb in the chasing pack. Source: BDRC Continental Hotel Guest Survey 2015)

32 A New Syndicated Media Tool Media Global Passenger Study Media GPS The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

33 A New Syndicated Media Tool Media Global Passenger Study Media GPS June 2016

34 Background Media GPS Effectively measuring the media habits of travellers has hitherto been challenging Access to airports is limited We ve had our eyes open for a solution Through a unique partnership with a travel technology provider we have access to 60% of global travellers Bridging a reporting gap A highly targeted sample of known travellers intercepted at the point of ticket purchase

35 The Methodology Whenever a flight is booked an itinerary is issued by as well as via travel apps Our method gives us access to these itineraries where we insert a survey invitation Example of survey invite The invitation is displayed in the native language the ticket was booked in Travel agency booking platforms Web & App platforms itineraries Travel Management Companies (TMCs) Media GPS

36 Sample Source Characteristics Unique Sample Source Analysis by region, route, destinations, departure, class of travel, airline Addressable Segments Fresh - not sourced from panel Media GPS Point of Ticket Purchase No sample wastage as all are verified travellers who have just purchased an air ticket 49% Business 51% Leisure Business & Leisure High Spenders 3 x greater expenditure than direct bookers Typically spend > US$ 6,000 p.a. on travel

37 What Makes This Study Different? 1 Unique Coverage of Travellers No other syndicated study can claim to reach travellers directly and at the point of purchase decision 2 Triangulation of Media Consumption The only study that can measure media brand consumption by route, class of travel and airline 3 Holistic Approach to Media Effectiveness Brand-level, device agnostic consumption of international media with enhanced reach & frequency modelling? 4 Media Engagement Uncover underlying relationship travellers have with international brands 5 In-the Moment Data captured at point of booking Understand trip intentions & media habits while fresh

38 Pilot Study Arrival Departure Why Conduct a Pilot? Singapore: Changi Airport Inbound & Outbound Sample Size: N= ~85 Test the Methodology Response rates Sample integrity Understand Incentives Stress Test the Survey ALL WORKED Realistic LOI Our platform agnostic questionnaire It was not to Generate usable results due to small sample size However, the results are interesting...

39 Pilot Study Findings Media GPS The BDRC Group About Us Unlocking the opportunity Hotel Guest Survey Asia Pacific Booking Pathways China Destinations & Occasions Home-stay market Marcomms Media GPS Pilot Study Finding Behaviour During Trip Market Coverage Conclusions Contact

40 Pilot Results Demographic Profile COUNTRY OF RESIDENCE GENDER UK 2% Other 14% Singapore 30% Female 21% New Zealand 16% India 18% Australia 20% Male 79% POSITION EDUCATION Technical 4% White Collar 17% Other 5% CEO/Owner /Partner 25% Professional 2% Supervisors 30% Middle Management 17% Graduate / Post Graduate 64% Un-weighted Data Strictly for internal use only. Not for commercial distribution

41 Pilot Results Demographic Profile COUNTRY OF RESIDENCE GENDER UK 2% New Zealand 16% Other 14% Singapore 30% Internationalists Female 21% Skews Heavily Male India 18% Australia 20% Male 79% POSITION EDUCATION Technical 4% Other CEO/Owner/P Very Senior 5% artner 25% White Collar 17% Supervisors 30% Middle Management 17% Professional 2% 25% CEO or Partner Educated ⅔ Graduate & Above Graduate / Post Graduate 64%

42 Pilot Results Travel Profile PURPOSE FOR CURRENT TRIP ABOUT TO FLY Flew for Leisure, 64% Economy, 84% Business, 24% Premium Economy, 10% Other, 12% Business, 6% PAST YEAR CAR RENTAL For Leisure, 78% Flown for Business, 62% 3-4 trips Each Majority Senior Positions Yes 43% Majority Senior Positions Un-weighted Data Strictly for internal use only. Not for commercial distribution

43 Pilot Results Travel Profile PURPOSE FOR CURRENT TRIP Impacted Flew by for Market & Leisure, Seasonality 64% Business, Main 24% Study Will Have 6-Month s of Fieldwork Other, 12% Mitigating Seasonality ABOUT TO FLY Pilot Market Economy, Dominated 84% by Short-haul Premium Economy, 10% Main Study Will Capture Long- and Short-haul Business, 6% PAST YEAR CAR RENTAL For Leisure, 78% High Frequency for Both Business & Leisure Flown for Business, 62% 3-4 trips Each Other Travel Expenditure Yes Captured43% Majority Senior Positions Majority Senior Positions

44 Pilot Results - Media Reach BRANDS TESTED 30-DAY REACH BY MEDIA: ANY DEVICE International l Media News Int l Print Factual Ent. Business General ANY INT'L MEDIA ANY INT'L NEWS ANY DOCUMENATRY ANY INT'L PRINT ANY BIZ NEWS 44% 42% 58% 76% 82% Un-weighted Data Strictly for internal use only. Not for commercial distribution

45 Pilot Results - Media Reach The purposive sampling of Media GPS, that is guaranteed to target genuine air travellers, reveals: Significantly Higher Reach for International Media than Other Syndicated Media Studies

46 Pilot Results - Brand Reach WEEKLY REACH TV & SMARTPHONE INT"L NEWS BRAND 24% 28% REGIONAL NEWS BRAND 12% 18% BIZ NEWS BRAND 10% 18% TV Mobile

47 Market Coverage Media GPS

48 Proposed Coverage & Sample Sizes Europe: N= 5,000 Ø 13,500 interviews globally per wave Ø Fieldwork July to December 2016 Latin America: N= 2,000 Africa: N= 1,500 Asia Pacific: N= 5,000 Ø Reporting late August 2016 Ø Re-contact Panel for omnibus / campaign evaluation or passive measurement

49 Measuring Behaviour During Travel Media GPS

50 Why Humans are More Interesting When They Travel Travel exposes us to new experiences and with it an openness to try new things giving marketers a valuable window of opportunity convert When on holiday people are more open to new experiences & trying new brands and experiences 51% Agree they are more willing to try something new when travelling + Even on business trips we find ourselves obligated by our hosts to try new and unfamiliar brands In the name of commerce Travel is fatal to prejudice, bigotry, and narrowmindedness, and many of our people need it sorely on these accounts Mark Twain And sometimes we even enjoy it + Source: IntoTheBlue 2015 N=1000 (UK)

51 Passive Measurement Add-on Service N= c. 500 Panel Questions triggered by location By app usage Recruited from main survey Global travellers Passive collection of device behaviour Activated 1-week prior to travel Monitoring 1-week into trip Active diary By activity from active diary At airport and hotel

52 Cross-border travellers Unlocking the revenue opportunity

53 Consumer insight Is key to unlocking opportunities at 3 points in the consumer journey Hotel Guest Study (HGS) Media GPS Passive & Active Diaries

54 Summary Award-Winning Thinking The BDRC Group is an award-winning research agency across multiple fields including media & advertising. Winner of the the MRS award for best international research in 2015 Critical targeting Delivering insight on travellers at their most critical decision-making points provides marketers with vital brand building opportunities Unique & Relevant Unique sample source with known traveller status affords us the opportunity to approach media effectiveness in a new way Bold & Ambitious Working with leading media and industry experts we aim to build a robust currency Fresh Approach To effectively reach travellers call for new data collection methods and fresh thinking

55 Contact Anthony Dobson Media Director Direct: Mobile: