On-Line Readiness StudyOVERVIEW ► FINDINGS ► NEXT STEPS

TourismTechnology.com

Table of Contents

TourismTechnology.com Overview On-Line Readiness Study Overview Rationale Approach Findings Literature Review Primary Research Best Practices (Bottom Line Critical Website Success

Factors) The Gap TourismTechnology.com Action Plan

Overview

TourismTechnology.com Overview

Overview Government-industry partnership between ACOA, the four

Atlantic Provincial Tourism Industry Associations, and the four Atlantic Provincial Tourism Departments.

Mandate to increase global competitiveness of operators through enhanced use of technology

Strong presence in Atlantic Canada since 1998 increasing rate of connectivity and general IT awareness

Technology Resource Coordinators (TRC’s) Credible and unbiased sources of IT information Bridge the gap between suppliers and industry Best practices/education on emerging technology and

trends

On-line Readiness Study

Study Rationale

Overwhelming trend towards use of Internet • Research

• Plan

• Book on-line

Trend applies to virtually all segments

Internet is the channel

We need to be prepared to meet and do business with our

customers on-line—or someone else will.

On-Line Bookings

Incidence of Travel Reservations/Booking On-line, 2000–2005

Among on-line travel planners

Among on-line frequent travelers

Among on-line travelers

Among travelers

Source: Travel Industry Association of America

Approach

Overview

Focus Determine readiness of Operator to do business on-line

Three-step Approach Assess local industry Assess consumers and future market trends Determine the “gap” between industry and consumer

and market demands

Results Develop strategic plan Assist industry to close the gap

Approach: Assess Consumers

Focus groups with household travel decision maker,

at least one trip in the past year Boston Toronto Montreal

Insights provided into Inspiration Planning Booking

Approach: Assess Market

Secondary research Demographic/baseline trend review

(TIA’s Travelers’ Use of the internet, 2005) Online travel best practices Future trends Emergent technologies

Provided insight into Industry direction Consumer expectations Critical success factors Importance of booking on-line

Approach: Assess Local Industry

Primary research 10-minute telephone interview 374 Telephone survey with Operator in Atlantic

Canada

Focused on Importance and role of website Administration of website On-line marketing activities Website content Website usability Website professionalism

Approach: Assess Local Industry (cont’d)

Website evaluation Conducted by website/content experts Assessed criteria consumers listed as important:

Searchability (i.e. Google) Content Navigation Usability

Consumers Operator Industry in Atlantic Canada

The Gap

Approach: The Gap

Findings

Overall

Internet is becoming key channel for research, planning and now booking travel

Consumer expectations are rising Google, Amazon, eBay setting the standard

Operators must recognize their website as part of complex buying process

Must be ready for the traffic Sell the product Close the deal!

Consumers not satisfied with operator sites Professionalism Content Usability Booking

We have work to do!

Primary Research

Primary Research: Consumers

Buying Cycle Inspiration Research Narrowing of options Booking

Consumers will only book on a website they like and trust!

Consumers will only book on a website they like and trust!

TRAVEL PLANNING AND BOOKING CYCLE

INSPIRATION

RESEARCH

NARROWING OPTIONS

BOOKING

TRAVEL PLANNING AND BOOKING CYCLE

INSPIRATION

RESEARCH

NARROWING OPTIONS

BOOKING

Phase 1: InspirationGoals

• Find “wish list” and “mustsee” destinations

Influences• Friends and advertising

• Marketing/advertising/ communications

• Operator website is not often a source for inspiration

Process• Broad in-take of information

• Looking for inspiration

• Something to “catch their eye”

Friends are the best resources since you know how they measure up against your own needs.Friends are the best resources since you know how they measure up against your own needs.

Primary Research: Consumers (cont’d)

TRAVEL PLANNING AND BOOKING CYCLE

INSPIRATION

RESEARCH

NARROWING OPTIONS

BOOKING

Phase 2: Research

Goal• Sort out options

• Select locations/activities to research

• Find deals

Influences• Internet (search engines and aggregators)

• Articles, guides, specialty TV shows

• Use of Agents decreasing

Process• Use aggregate sites to generate options

• Look on property site for details/deals

• Scan site to check for fit with tastes/standards

• Look for deals/promotions/availability on specific and flexible dates

Primary Research: Consumers (cont’d)

TRAVEL PLANNING AND BOOKING CYCLE

INSPIRATION

RESEARCH

NARROWING OPTIONS

BOOKING

Phase 3:

Narrowing Options

Goal• Find deals

• Refine plans

• Confirm choice

Influences• Internet (aggregators, operator sites)

Process• Visit 3-6 sites

• Confirming details (activities, price, dates)

*Jumping-on point to local site Consumer is now going to operator site directly

Primary Research: Consumers (cont’d)

TRAVEL PLANNING AND BOOKING CYCLE

INSPIRATION

RESEARCH

NARROWING OPTIONS

BOOKING

Phase 4: BookingGoal

• Confirm deal

• Complete transaction

Influences• Safety

• Security

• Accuracy

• Support (1-800 number)

Process• Look for secure/recognized

booking option

• Credit card most popular

Primary Research: Consumers (cont’d)

Conclusions (Success Factors for Operator Site) Professionalism

Trustworthy Secure

Content Convey charm Pricing Deals/packages Availability Amenities Photography

Usability Site navigation Tools

Mapping Calendars

Primary Research: Consumers (cont’d)

Customers needs must be satisfied at each stage of the cycle, or they will not proceed.

Customers needs must be satisfied at each stage of the cycle, or they will not proceed.

Primary Research: Operator Phone Survey

Key Findings 99% of Operators have an independent website

52% can edit/change Strongly satisfied with website presence Not many roadblocks to improving websites Over half use search engine marketing Over half respondents use site visits and email inquiries

to measure success of their website.

Key Conclusions Operator’s happy with websites

View websites as basic information tool Many content/quality elements missing from sites Room for growth

Primary Research: Operator Phone Survey (cont’d)

Sites not updated frequently

Frequency of Site Updates

Weekly

Quarterly

Monthly

Every 6 Months

Yearly

Never

Time Period

Primary Research: Operator Phone Survey (cont’d)

No perceived problems with improving website

Roadblocks to Improving Websites

Investment in Design

Equipment

Marketing

Photography

Connectivity

Hosting Issues

Other

No Perceived Problems

Primary Research: Operator Phone Survey (cont’d)

Investment in site maintenance is low

Website Marketing Spend

< $100

$101–$249

$250–$499

$500–$999

$1,000–$2,499

$2,500–$4,999

> $5000

Marketing Investment

No

Yes

Traditional Advertising

(Visitor’s Guides)

Co-operative Advertising

(Events Sponsors)

SearchEngines(Google)

Web Banner Advertising

Primary Research: Operator Phone Survey (cont’d)

• Traditional advertising most popular, search engine marketing happening too

Primary Research: Operator Phone Survey (cont’d)

Measuring Results 33% of Operators do not measure results 67% currently run analytics on their websites

65% use unique visits to measure success 57% use email inquiries 46% use actual bookings

Primary Research: Website Evaluations

Key Findings Many elements consumers want are not found on

majority of Operator websites. Gap between consumers and Operators perception

Users rate website experience an average of 6/10 Operator rate own websites 8/10

Key Conclusions Need to raise the bar Online delivery not meeting consumers’ needs Action must be taken quickly or consumers will

go elsewhere

Primary Research: Website Evaluations (cont’d)

Navigation Key information regarding rates is not always there

Navigation Item Consumers Want to See % Operators Who Said No

Specials 82%

Amenities 63%

Maps 49%

Local Attractions 44%

Rates 43%

Rooms 28%

Contact Us 28%

Primary Research: Website Evaluations (cont’d)

Mapping 59% of sites had at least one map on site 40% had driving instructions But… of those that had mapping, most only scored

6/10 in terms of experience

Conclusion Consumers expect good maps, driving directions and

tools to help plan their trip

Primary Research: Website Evaluations (cont’d)

Content Consumers Want to See % Operators Said Yes

Quality

Local attractions 67% 7/10

Food menus 63% 6/10

Description of amenities 55% 6/10

Links to other attractions 48% 6.5/10

Photos of local attractions 43% 6/10

Other restaurant information 27% 6/10

Policies (smoking, pets, etc.) 26% 6.5/10

Local weather information 16% 6/10

Calendar of events 14% 6/10

Content Information is sometimes there, but not high quality

Primary Research: Website Evaluations (cont’d)

Photos were not ranked as high quality (avg. 6.5/10) Yet Operators were satisfied with images

Good photography helps sell Builds trust Conveys charm/feeling of property Allows consumer to form opinion

Consumer expectations are… Photos of every room, linked to a description with a rate

Only 38% of evaluated sites had photos of every room, and only 24% linked to rates and descriptions

High quality images, or they leave the site/don’t call

The Gap

The Gap

Consumer Expectation

Industry Website

FUNCTIONALITY

USABILITY

PLEASURE & EMOTIONAL

SATISFACTION

THE GAP

What is “The Gap”?

Consumers will go elsewhere if they continue to receive the current level of experience on Operator websites. A change in perception of the Operator is mandatory to the success of any program.

Consumers will go elsewhere if they continue to receive the current level of experience on Operator websites. A change in perception of the Operator is mandatory to the success of any program.

Gaps on Websites

Content Quality of images/information was not high Links to deals, packages and specials were often missing Links to other local events, restaurants, shops, night life

often not available

Usability Websites reviewed were not

Easy to use Easy to navigate Easy to find information Did not provide a showcase or summary of features

Consumers require these elements to be present, and of a high quality or they will move on.

Consumers require these elements to be present, and of a high quality or they will move on.

Gaps on Websites (cont’d)

On-Line Booking is key Majority of transactions will occur on-line within the

next 3-5 years Source, eMarketer: 62% of travelers will book directly with

the supplier by 2010

Operators need capability to remain competitive The telephone is not enough

Gaps on Websites (cont’d)

On-line Booking

Incidence of Travel Reservations/Booking On-line, 2000–2005

Among on-line travel planners

Among on-line frequent travelers

Among on-line travelers

Among travelers

Source: Travel Industry Association of America

Gaps on Websites (cont’d)

Conclusions Most Operator websites do not meet the needs of on-line

consumers A successful website is

Easy to use Provides meaningful content Communicates the experience Makes the consumers want to buy

Unless action is taken quickly, this will get worse, and have a negative impact on bookings

Action Plan

Action Plan

TourismTechnology.com Action Plan

• Education Develop and deliver education about the gap

PowerPoint presentation to industry groups Industry trade shows and annual meetings

Options Consult Industry on available options

Content management systems On-line booking/e-commerce options

Tools Develop and deliver best practice tools to close the gap

Best practice website template Best practice checklist

Mentoring and support Provide on-going support to industry and operators to adopt, implement

and successfully use new on-line tools Consult operators on new technology trends within the industry to help

them continuously deliver a positive customer experience

TourismTechnology.com Contact Information

Jamie Vander KooiTechnology Resource CoordinatorTourism Industry Association of PEI - TIAPEI(902) 566-5008jamie@tourismtechnology.com

Bernard GauvinTechnology Resource CoordinatorTourism Industry Association of New Brunswick(506) 344-0183bernard@tourismtechnology.com

Craig FoleyTechnology Resource CoordinatorHospitality Newfoundland and Labrador(709) 722-2224 Ext. 32craig@tourismtechnology.com 

Michelle Sears

Technology Resource CoordinatorTourism Industry Association of Nova Scotia(902) 423-4480michelle@tourismtechnology.com