MULTI-NATIONAL TRAVEL TRENDS Connecting the Digital Dots: The Motivations and Mindset of Online Travelers

METHODOLOGY ONLINE SURVEY Sample Size Total: n=8006 Australia: n=1000 Canada: n=1001 China: n=1000 France: n=1002 Germany: n=1000 Japan: n=1001 UK: n=1001 US: n=1001 Data Collection Method Quantitative Survey Field Work 30 March 7 April 2017 Qualifying Criteria Must have booked online travel in the past year 2

LAST TRIP LOOK BACK BY COUNTRY

NUMBER OF TRIPS PER YEAR VARIES WIDELY BY COUNTRY 3.9 4.4 5.3 Total Number of Trips Taken in the Past Year 4.4 3.5 3.5 4.0 3.3 2.8 Chinese travelers take by far the most with 5.3 on average, while Canadians take the fewest at under 2.8 trips Q9: Typically, how many personal/leisure and business trips do you take per year? 4

7.9 6.7 6.3 Last Vacation Duration in Days 9.8 8.7 7.9 10.2 10.6 NOT ALL VACATIONS ARE CREATED EQUAL 3.4 Australians took the longest vacations averaging 10.6 days, while Japanese took the shortest averaging 3.4 days 5 Q15. How long was your vacation?

HALF PREFER TO EXPLORE BEYOND THEIR BORDERS While others travel within their own country 18% 27% 14% 45% 68% 73% 56% 59% IN MY COUNTRY OUTSIDE MY COUNTRY Q14. Was the trip.? 6

RELAXING & SIGHT-SEEING VACATIONS BIGGEST DRAW Chinese, Japanese & British travelers like to see the sights, while visiting family is big with Australians, Canadians and Americans 74% 52% 62% 62% 61% 52% 51% 53% 47% 49% 45% 46% 42% 42% 36% 29% 55% 50% 51% 40% 39% 33% 28% 19% 43% 36% 35% 35% 26% 26% 24% 24% 22% 23% 20% 20% 20% 17% 15% 11% Relaxing Sight-seeing Visiting Family Family Play Romantic Getaway Q10: What types of vacations have you taken in the past year? 7

PLANES, TRAINS & AUTOMOBILES Most travel to their destination by plane, while Japanese are more agnostic about types of transportation Type of Travel to Last Destination 66% 65% 65% 72% 57% 57% 54% 37% 37% 9% 31% 28% 19% 31% 30% 21% 1% 20% 25% 2% 11% 8% 13% 1% Plane Car Ride Train Ride Q16. How did you get to your destination? 8

HOTELS LEADING PLACE TO STAY 9 in 10 Japanese travelers stayed in a hotel; French travelers most open to alternative accommodations 90% 63% 75% 55% 67% 66% 51% 50% 13% 17% 17% 20% 14% 11% 14% 5% 5% 9% 7% 8% 10% 2% 9% 12% Hotel With family/friends Resort 17% 4% 6% 7% 10% 6% 6% 5% 0% 3% 4% 0% 2% 4% 3% 0 1% 0 2% 3% 8% 4% 2% 6% Alternative Accommodations Cruise Other Q17. Where did you stay on your last trip? 9

TRAVELERS HAVE A BUDGET IN MIND Chinese, French and Canadian travelers especially consider budget a primary factor 68% 81% 64% 74% 65% 59% 77% 71% YES NO Q18. Was budget a primary factor when you were researching/ booking your last trip? 10

HALF TO 2/3 SPENT ON FLYING, SLEEPING & DINING Tours and shopping key attractions for travelers in market, especially for Chinese Proportion Spent On Hotel 27% 18% 34% 25% 31% 31% 23% 23% Flight 20% 15% 14% 24% 20% 17% 18% 25% Food 17% 16% 18% 17% 16% 16% 16% 16% Transportation 10% 11% 14% 10% 10% 8% 12% 9% Attractions/Tours 11% 15% 6% 9% 10% 10% 11% 9% Shopping 8% 16% 11% 9% 7% 8% 9% 9% Alternative Accommodations 4% 5% 1% 3% 3% 6% 7% 4% Other 3% 4% 3% 3% 3% 4% 4% 5% Q20. What proportion of your travel budget did you spend on each of the following? 11

MOST BOOKED VACATIONS WITHIN LAST THREE MONTHS 8 in 10 booked within the last six months 55% Last Time Booked Travel 47% 41% 40% 40% 37% 36% 33% 26% 23% 20% 25% 23% 21% 23% 23% 22% 22% 20% 21% 21% 21% 19% 20% 20% 17% 16% 16% 16% 13% 6% 16% Less Than 3 Months Ago 3-5 Months Ago 6 Months Ago A Year Ago Q7: When was the last time you booked travel on a travel website for a personal vacation/holiday? 12

OTAs & SEARCH ENGINES LEADING PLANNING RESOURCES Destination sites and social media play an influential role Resources Used For Planning Last Trip 67% 53% 54% 52% 53% 50% 51% 54% 48% 48% 51% 54% 47% 50% 49% 46% 43% 41% 38% 42% 45% 35% 40% 37% 36% 35% 39% 39% 31% 31% 29% 35% 36% 24% 23% 28% 26% 20% 23% 17% Online Travel Agency Search Engines Travel Review Sites Comparison Travel Sites Hotel Sites 44% 28% 31% 33% 31% 25% 22% 16% 56% 38% 35% 23% 27% 29% 30% 23% 18% 21% 19% 21% 23% 25% 13% 17% 19% 14% 9% 11% 14% 18% 9% 10% 10% 4% 6% 10% 8% 8% 9% 12% Airline Sites Destination Sites Social & Blog Sites Alternative Accom Sites Car Rental Sites Q35: What resources were used for planning your last trip? 13

OTAs CONVERT THE MOST TRAVELERS From inspiration to booking, OTAs prevalent throughout the purchase path Sources Used To Book Travel Online On Last Trip 67% 52% 56% 50% 48% 48% 47% 44% 46% 43% 39% 40% 36% 32% 38% 34% 27% 32% 35% 33% 27% 30% 29% 28% 31% 31% 23% 26% 23% 26% 27% 23% 16% 23% 24% 20% 21% 18% 18% 12% Online Travel Agency Search Engines Airline Sites Travel Review Sites Hotel Sites 28% 23% 31% 24% 22% 22% 30% 13% 23% 22% 10% 17% 16% 14% 14% 14% 11% 12% 10% 10% 10% 10% 12% 12% 10% 9% 9% 13% 3% 5% 7% 6% 7% 1% 1% 3% 4% 2% 2% 4% Comparison Travel Sites Destination Sites Alternative Accom Sites Car Rental Sites Other Q38: Please indicate which resources you used to book travel online on your last trip 14

TRAVELER ATTITUDES BY MARKET

TRAVELERS CAN BE DESTINATION INDECISIVE Japanese most likely to not have any destination in mind when first 6% 21% 14% 7% 8% 15% 14% 8% 50% 54% 44% 43% 60% 58% 51% 47% 43% 50% 38% 36% 28% 26% 34% 45% deciding to travel, while due to visa requirements Chinese likely have already decided on a destination Don't have a destination in mind Deciding between 2 or more destinations Have already decided on my destination Q23. Which of the following options best describes the way you feel when you first decide to take a trip? (Please select one) 16

75% AT LEAST HALF OF TRAVELERS OPEN TO DESTINATION INSPIRATION 45% 39% 41% 28% 34% 28% 27% 18% 67% 53% 68% 67% 61% 53% 52% Chinese travelers especially are open to help and ideas, closely followed by Canadian, American, and British travelers Know exactly how to do it and don't need any help Pretty sure I know what to do, but may need some help and inspiration 7% 5% 7% 5% 6% 5% 5% 3% Don't know where to start and would need lots of help and inspiration Q24. Which of the following options best describes the way you feel when you first start planning a trip/holiday? 17

VALUE & EXPLORATION DRIVE TRAVELER SENTIMENT You only live once opportunities also rank high in consideration Percent of Travellers Who Somewhat Agree/Strongly Agree With The Statement 93% 94% 92% 91% 92% 87% 78% 94% 88% 81% 79% 55% 80% 80% 75% 76% 77% 70% 68% 67% 73% 74% 73% 70% 67% 64% 64% 67% 68% 70% 64% 67% 65% 67% 57% 60% 64% 49% 51% 63% I look for the best deals and most value for my dollar I'll go anywhere that allows me to explore the outdoors and be active I prefer to go to museums, historical sites and arts & culture fill up my travel itinerary You only live once, so taking risks and crossing things off my list is imperative I often opt for "off the beaten path" locations and/or recommendations from locals 81% 67% 78% 70% 59% 67% 70% 65% 70% 63% 64% 55% 59% 56% 55% 63% 61% 56% 51% 54% 59% 62% 59% 55% 48% 48% 48% 45% 40% 48% 39% 34% 29% 26% 31% 27% 28% 26% 27% 30% Every vacation is family oriented and has a specific focus on what will keep my family entertained and happy I prefer all-inclusive vacations like I'm all about taking a nap on the beach, resorts and cruises where I don't have spa treatments and all-day relaxation to worry about a thing I plan all my travel around where and what I eat and drink I don't like travelling far, as long as I'm not at work, I'm on vacation Q8 Please select to what extent you agree with the following statements. (Please select strongly disagree, somewhat disagree, somewhat agree or strongly agree for each statement) 18

WHEN PRIORITIZING, Activities I will be doing on my trip A once in a lifetime experience 150 186 ACTIVITIES & UNIQUE The cultural experience Lowest Price My food experience 147 137 131 EXPERIENCES DRIVE TRAVEL Deals and/or special offers A place where I can vacation with friends Going somewhere where I can take memorable pictures 129 128 127 DECISIONS Outdoor activities 121 Price and deals still important, but fall out of top three influences Feeling pampered during my vacation Recommendations from family & friends Transportation available on the trip 119 103 95 Going somewhere unique that will produce 93 Notable Difference For this exercise, you will go through a small number of different screens where we will ask you to identify which consideration would be most important to you in terms of how you choose a vacation/ holiday and which consideration would be least important to you in terms of how you choose to purchase a vacation/holiday. Total (n=8006) 19

ACTIVITIES & EXPERIENCES INFLUENCE DECISIONS Japanese travelers value pricing and culinary experiences 202 203 189194191 197 169 142 159158 175180 156 146 150 166 156 143145 148 149 143 139 124 184 161 167 151 120 111 202 149 118 123124 121 106103 80 65 Activities I will be doing on my trip A once in a lifetime experience The cultural experience Lowest Price My food experience For this exercise, you will go through a small number of different screens where we will ask you to identify which consideration would be most important to you in terms of how you choose a vacation/ holiday and which consideration would be least important to you in terms of how you choose to purchase a vacation/holiday. Total (n=8006) 20

TRIP INFLUENCES CAN VARY BY COUNTRY Chinese and Germans want to feel pampered, Japanese want transportation options 147 76 161 151 164 116 101 116 155 136 137 132 136 115 118 124 132 136 149 146 128 128 112 121 124 125 106 121 121 111 117 77 97 170 133 94 89 165 115 87 Deals and/or special offers A place where I can vacation with friends Going somewhere where I can take memorable pictures Outdoor activities Feeling pampered during my vacation 142 102 109 109 119 104 103 84 96 81 89 99 112 95 98 102 105 90 91 98 90 96 96 74 84 85 99 101 74 89 101 89 87 84 89 61 75 81 81 77 Recommendations from family & friends Transportation available on the trip Going somewhere unique that will produce stunning/shareable photos for social media/ scrapbooks for me Online reviews from other travelers Professional reviews & recommendations from travel agents, guide books or media For this exercise, you will go through a small number of different screens where we will ask you to identify which consideration would be most important to you in terms of how you choose a vacation/ holiday and which consideration would be least important to you in terms of how you choose to purchase a vacation/holiday. Total (n=8006) 21

INFLUENCERS AND KEY CONNECTION POINTS FOR TRAVELERS

PROMOTIONAL MESSAGING ON SOCIAL DRIVES DECISIONS Imagery and content also highly inspirational and influential 60% 59% 53% 51% 47% 48% 47% 47% 40% 45% 46% 44% 34% 23% 38% 48% 54% 42% 36% 38% 36% 33% 32% 33% 44% 39% 41% 33% 26% 43% 40% 40% I see a deal or promotion Travel pictures that are posted by my friends Blogs / articles about travel destinations Travel pictures that are posted by experts (travel writers, bloggers, etc.) 48% 34% 36% 31% 32% 26% 27% 28% 30% 33% 16% 21% 26% 27% 32% 28% 22% 59% 33% 20% 21% 25% 19% 17% 21% 11% 14% 11% 10% 8% 13% 12% I watch travel videos posted by my friends I watch travel videos posted by experts I search for hashtags of destinations I am interested in I look at where celebrities travel Q29. How does social media influence you? Which of the following influence your decision in booking a trip? Total (n=4747) UK (n=507) Germany (n=493) France (n=580) China (n=923) Japan (n=408) Australia (n=549) Canada (n=608) US (n=679) 23

DEALS & REVIEWS CAN HELP TRAVELERS CONVERT Destination content closely follows in influencing travelers 91% 88% 91% 86% 92% 86% 91% 80% 88% 88% 84% 88% 80% 81% 68% 70% 79% 75% 78% 77% 66% 72% 76% 56% I look for deals before making a decision I read reviews of places I want to visit from sites like TripAdvisor before making my final decision Informative content from destinations and/or travel brands can influence my decision making process 76% 88% 73% 67% 76% 82% 66% 53% 62% 65% 70% 49% 54% 48% 53% 50% 55% 55% 43% 50% 33% 22% 32% 45% I talk to people who have visited the place before making a decision Ads can be influential in my decision making process I use loyalty programs in my decision making process Q32. Please select to what extent you agree with the following statements. (Please select one for each statement) 24

EFFECTIVE ADVERTISING FEATURES IMAGERY, INFORMATIVE CONTENT, RELEVANT DEALS Chinese and Americans are particularly influenced by ads with appealing imagery 63% 66% 63% 56% 54% 55% 51% 48% 48% 48% 51% 46% 47% 48% 45% 48% 47% 45% 46% 44% 42% 37% 37% 29% 40% 33% 30% 14% 32% 27% 28% 20% 24% 15% 15% 14% 13% 13% 7% 5% The deals advertised look appealing The imagery in the ad looks appealing The content in the ad is informative The ad includes helpful reviews None of the above Q33. How can ads help influence in your decision making process? (Select all that apply) 25

DESKTOPS DOMINATE THE PATH, SMARTPHONES IN TRIP Chinese and Japanese most likely to use smartphone at all stages When I m looking for inspiration on where to travel When I m researching on where to travel When I m booking the travel Smartphone 42% 71% 50% 36% 33% 38% 37% 35% 28% 44% 38% 27% 22% 25% 25% 27% 19% 51% 31% 14% 11% 13% 15% 18% Desktop/Laptop 76% 53% 63% 81% 74% 78% 74% 77% 83% 72% 75% 86% 80% 83% 82% 81% 83% 76% 90% 85% 88% 86% 84% 57% During my trip 73% 78% 75% 66% 67% 71% 61% 62% 34% 23% 21% 37% 26% 29% 39% 37% Q47. For each of the following statements, which device(s) do you use? Please select all that apply. 26

KEY INSIGHTS & MARKETING TAKEAWAYS Travelers from different countries have varying trip preferences and influences that impact their purchases Budgets, deals and value are considerations for all travellers, but activities and experiences get to the heart of travel decisions Travelers are undecided on a destination, and seeking content and information from a variety of online sources on multiple devices Target travelers with messaging and imagery tailored to their travel priorities and interests Lead with unique activities and experiences while providing deals to make the decision even easier Create a multi-platform strategy to reach and influence travelers through relevant content throughout the purchase journey 27