NEXTgen Traveler webinar will begin shortly.

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1 The NEXTgen Traveler webinar will begin shortly. If you need technical assistance with the webcast, contact us at and we will assist you immediately. 1 Tuesday, August 26 th, :00 3:00 PM EDT Hospitality Sales and Marketing Association International University (HSMAI-U) 2

2 Overview of Format and Topic Moderator Barb Taylor Carpender, CMM, CHSC Managing Director, HSMAI University 3 HSMAI University Alliance Partner 4

3 POLL QUESTION #1 How many people are participating in this webinar at your location today? or more 5 Today s s Presenters Peter Yesawich, Ph.D. President & CEO Ypartnership Lorraine Sileo Vice President, Research PhoCusWright 6

4 The NEXTgen Traveler Do you know who they are? 7 Methodology 2,559 U.S. adults Active leisure travelers Users of current technology Over-sample of college students Data collected online in March 2008 Error interval of ±1.94% 8

5 Respondent Screeners 50/50 gender split Have taken a leisure trip of at least 75 miles from home during the last twelve months that required paid overnight accommodations Are familiar with the latest entertainment, computer, or consumer technology Active users of the latest entertainment, computer, or consumer technology Frequent users of the latest entertainment, computer, or consumer technology 9 Demography The majority of NEXTgen travelers: Are White (83%) Are married (69%) Earn $50,000 or more annually (65%) Are employed full-time (60%) Are white collar professionals (51%) Do not have children (51%) Have at least a Bachelor s degree (50%) Are Generation Xers (42%) 10

6 The NEXTgen traveler embraces technology, is not a risk taker, likes to be in control and is an experientialist Technology has improved my ability to : stay in touch with friends and family learn new things do my job 11 The NEXTgen traveler embraces technology, is not a risk taker, likes to be in control and is an experientialist like traveling to new places and experiencing new things feel the need to be in control of their lives 12

7 The NEXTgen traveler embraces technology, is not a risk taker, likes to be in control and is an experientialist would travel more if they had more money believe it s important to follow their dreams would travel more if they had more time consider themselves risk takers 13 NEXTgen traveler habits change with age, and include significant offline travel spend* Age % of Respondents Avg Annual Travel % Online Spend* Travel Spend Echo Boomers (18-28) 23% $2,002 49% Gen X (29-42) 44% $2,472 49% Boomer (43-61) 28% $3,062 45% Matures (62+) 4% $3,082 42% * Includes destination components of trip spend such as food & beverage, entertainment, and ground transportation 14

8 The NEXTgen traveler spends a little over $2,500 annually on travel (mean $2,531*), 3-4% of income * Includes destination components of trip spend such as food and beverage, entertainment, and ground transportation 15 NEXTgen travelers are heavy users of wireless and digital technology Nine in ten (91%) own a cell phone Only 16% own a PDA phone such as a BlackBerry 5% own an iphone The majority (65%) take pictures or text message (63%) with their cell phone Three in ten use their phones to send/receive (30%) or play video games (29%) 24% use their phone to play MP3s 22% get updates on news, sports, or stocks 16

9 NEXTgen travelers are heavy users of wireless and digital technology Nine in ten (91%) own a cell phone, 16% own a PDA phone such as a Blackberry, 5% own an iphone 17 NEXTgen travelers are heavy users of digital devices 18

10 The NEXTgen travelers who own the latest technology spend more on travel Own Avg Annual Travel Spend* % Online Do Not Travel Spend Own Avg Annual Travel Spend* % Online Travel Spend Car GPS 23% $3,819 53% 77% $2,155 46% LCD TV 26% $3,320 49% 74% $2,249 47% Smartphone 16% $3,343 54% 84% $2,371 46% Handheld GPS 15% $3,613 51% 85% $2,333 47% Plasma TV 13% $3,720 52% 87% $2,344 47% 19 NEXTgen travelers are moderately active participants in general social networking/ community sites, but less so in travel specific versions 20

11 NEXTgen travelers are active and frequent users of the Internet 21 The NEXTgen traveler is an active user of the Internet to plan and book travel services Seven in ten (71%) use the Internet to search for travel information Fully two-thirds (67%) have booked an airline ticket, hotel room, or rental car More than half (56%) have taken a virtual tour of a hotel or resort online 41% have taken a virtual tour of a destination 38% build trip itineraries online 22

12 The NEXTgen traveler is socially active online More than one-half (60%) have used the Internet to upload photos, read blogs or reviews, spend time reading social networking sites (58%) or send instant messages (55%) One-third of NEXTgen travelers have read (33%) and more than one in seven have written (17%) a travel review of some kind Less than two in ten (17%) have arranged group events 23 The NEXTgen traveler relies most on the recommendations of friends/family when making travel decisions 71% report that the recommendations of friends and family are very/extremely influential when making travel choices Half (51%) report being influenced by information found on a destination Web site or through an online travel intermediary (49%) 43% are influenced by information directly from the travel service supplier 37% are influenced by personal comments read in reviews on social networking or travel review sites 24

13 NEXTgen travelers decisions are less influenced by travel offices, travel agents, media coverage or advertising Approximately one-third state they are influenced by travel bureaus/offices (33%), travel agents (31%) or information found in travel brochures (30%) One quarter report being influenced by articles found in newspapers or magazines both online (26%) and offline (25%) 25 The Web site feature of greatest interest to NEXTgen travelers is the ability to check the best fares and rates 77% cite the ability to check fares/rates as the most important feature 69% mention an easy to use booking feature 46% mention notifications promoting special fares/rates 26

14 NEXTgen travelers respond to visual media 73% are interested in viewing photos of hotel/resort facilities, rooms, etc. 60% are interested in virtual tours hotel/resort facilities, rooms, etc.; 59% in area maps; 58% in area photos; 47% in area virtual video tours 27 Fewer NEXTgen travelers prefer active communications 26% are interested in the opportunity to communicate with live counselors 26% are interested in sharing trip itineraries Only one in five (21%) is interested in the ability to read/write blogs 28

15 The NEXTgen traveler most commonly takes a trip to visit friends and family 29 NEXTgen travelers are less commonly to have taken outdoor-oriented trips 12% took a camping/hiking/climbing vacation 11% visited a National/State Park 7% took a fishing trip 5% took a skiing/boarding trip Only 3% took an adventure or golfing trip 30

16 NEXTgen travelers are also less commonly to have taken cultural or cause-related trips 9% took a trip primarily for cultural purposes 7% traveled as part of an educational program 4% visited a spa 4% took a culinary trip 3% traveled for religious purposes 2% took a volunteer vacation 31 The NEXTgen traveler also has well-established hotel and resort amenity preferences Seven in ten find quiet or soundproofed guest rooms (71%) and premium bedding (70%) very/extremely important Two-thirds (67%) find the proximity of preferred activities from the hotel/resort important 61% mention free Internet access in the guest room 47% prefer a casual, three-meal restaurant on property 34% mention a fine-dining restaurant 17% cite a mini-bar in the guestroom 32

17 Number Of Leisure Trips Planned This Year Compared To Last Year Base: Total respondents, n= Primary Reason For Taking Fewer Leisure Trips, 2008 Cannot afford to financially 21% Price of gasoline is too high 15 No time/too busy 13 Travel in general costs too much 10 Can't get away from my job 9 Current economic conditions 9 Children are too young 5 Have projects to do at home 4 Base: Among those who are planning fewer leisure trips, n=

18 Conclusions Despite high level of technology ownership and usage, offline channels stay viable Tech savviness and online booking doesn t fall off dramatically with age Advertising messages are often ignored; traditional media outlets lose influence High value to social networking permeates online and offline behavior Visual media and entertainment value greatly influence travel choice and spend but nothing trumps friends and family If they can, they will travel is a top priority, despite lower incomes, tough economy 35 There s s More Where This Came From! Get the full report The NEXTgen Traveler at the pre-publication price (valid through August 31) For more information about the extended data and analysis available through the The NEXTgen Traveler report, please contact Bruce Rosard at brosard@phocuswright.com. 36

19 Questions? Peter Yesawich, Ph.D. President & CEO Ypartnership Lorraine Sileo Vice President, Research PhoCusWright 37 Upcoming HSMAI University Programs The Future of Leisure Travel Webinar: Outlook and Sales Strategies September 16 th, :00 3:00 PM EDT Dave Bratton, Managing Director, Destination Analysts, Inc. Gary Sain, President & CEO, Orlando CVB Affordable Meetings: National - DC September 10 th 11 th, 2008 Hotel Sales Strategy Conference Washington DC Convention Center September 9 th, 2008 Peter Starks Simulation Seminar Managing Business Results September 22 nd 24 th, 2008 Managing Revenue September 25 th 26 th, 2008 Lynn University Boca Raton, FL 38