Michael Grogan, GfK & Helen Roberts, GfK

1© GfK May 2016 | MRS Travel, Tourism & Hospitality

The Evolving Omni-Channel Customer Journey

Helen Roberts, Michael Grogan


The omnichannel pre-holiday journey

GfK Leisure Travel

Monitor

GfK ConsumerScope

Travel Panel

GfK Consumer Life

GfK Cross-Media

Link

A case study on the role of digital channels in holiday research and booking


GfK Leisure Travel Monitor 2016

DESTINATION l Spain is the leading destination for travellers from UK

Total Market Spain Greece Turkey USA Cyprus Portugal Italy Caribbean

# 5741118 Total42% 14% 6% 5% 5% 4% 4% 3%

Balearic Is.18%

Canary Is.13%

Mainland 10%

Bookings March YTD


UK is important for Spain

Travellers from UK make up the 23%

of Spain’s 68 million tourists per year


Source: ConsumerScope Travel Panel

Who goes to Spain?

Social Grade Income AgeLocationChoice

Driver Visits

C2DE Lowerincome

Slightly olderGreater UK dispersal

Price a key driver of both destination

and operator

More likely to be repeat

visitors

Spain higher or lower

6© GfK May 2016 | MRS Travel, Tourism & HospitalityConsumerScope Panel Travel monitor

The importance of online is clear…

…over 80% of visitors

to Spain researching

their trip online


How we know what people are doing online

We passively monitor what

people do on line, enabling us to

watch what they do without influencing

them.


Who l Offline bookers of Spanish holidays are older, more likely to be female, and have higher household incomes

54%

8%

64%

33%

24%

37%

2 person household

have children (living in a household)

weekly browsing<7hrsONLINE Bookers

51% female

36% <45 yrs

18% £50,000+

OFFLINE Bookers

67% female

36% <65 yrs

33% £50,000+

GfK CrossMedia Link


ConsumerScope Panel Travel monitor

Two-fifths of online purchasers undertook some form of offline research l Almost all who purchase offline will undertake some form of online research

22%offline

Book online

Research online

78%online

18%offline

60%online

22%both

80% of offline bookers did some online research


Please note the data shown is a selection of relevant data, not all the data available over the given period

Frank’s journey: Pre-booking

Aug. 17th Sep. 4th Sep. 26th Oct. 9th Oct. 10th-11th Oct. 21st Oct. 27th-28th

PC

Where Smartphone

Offline

Researched destinations on Expedia.

Looked at Spain, Italy, Greece

Further research on Virgin HolidaysUSA, Mexico

Also looked at Car RentalsEnterprise

Visited TripAdvisor app

Went into Thomsons store

Picked up Brochure for Spain

Browsed brochure over weekend

Back on ExpediaFocus on Spain, looks at Barcelona, Valencia, Seville

On OpodoFocus on Barcelona

Makes hotel booking via Expedia in Barcelona

Makes flight booking via EasyJet

What Trip toBarcelona, SpainBooking: Oct. ‘15Trip: Jan. ‘16

Who 35-44 yearsMaleSouth EastEngland, UK


GfK CrossMedia Link - Base: Mar 2014 – Mar 2015, bookers of trips to Spain, online researchers (n=68)

How l Online research for Spanish holidays takes place over a long period with frequent, short bursts of activity

The purchase journey

93 18 4 11

Average amount of days taken for purchase journey

days of relevant activity

4 hours in length online activity

Different sites on average visited



Categories l Over half of online researchers visit aggregators, search, travel advice, and travel operators

Aggregators Airlines Car rentals Currency Hotels Search Travel advice Travel operators

62

42

12

3

42

57

65

54

% of people using these sites



Categories l When looked at in terms of duration, travel advice is particularly key

Aggregators Airlines Car rentals Currency Hotels Search Travel advice Travel operators

3327

2 0.02

17

3

100

55

Time (in min.) per user (Avg.)


Categories l Search is a key entry point across categories, though aggregators often act as a gateway, particularly for airlines and advice

Aggregators Airlines Travel Advice

AdviceSearch AggregatorsSearch Aggreg

atorsSearch

14.3% 5.3% 32% 10.2% 31.7% 6.9%


% of traffic between touchpoints


Device l PCs and tablets are they key devices for research, with the device users exhibiting similar usage patterns

PC Tablet MobileShort infrequent

sessions focused on advice and aggregators

Longer, more in-depth research

Longer, more in-depth research


Please note the data shown is a selection of relevant data, not all the data available over the given period

Frank’s journey: Pre-booking

Aug. 17th Sep. 4th Sep. 26th Oct. 9th Oct. 10th-11th Oct. 21st Oct. 27th-28th

PC

Where Smartphone

Offline

Researched destinations on Expedia.

Looked at Spain, Italy, Greece

Further research on Virgin HolidaysUSA, Mexico

Also looked at Car RentalsEnterprise

Visited TripAdvisor app

Went into Thomsons store

Picked up Brochure for Spain

Browsed brochure over weekend

Back on ExpediaFocus on Spain, looks at Barcelona, Valencia, Seville

On OpodoFocus on Barcelona

Makes hotel booking via Expedia in Barcelona

Makes flight booking via EasyJet

What Trip toBarcelona, SpainBooking: Oct. ‘15Trip: Jan. ‘16



Frank’s journey: Post-booking l with 3 months until he travels, during this period


What Trip toBarcelonaSpainBooking: Oct. ‘15Trip: Jan. ‘16

4 visits to Expedia - looking at potential things to do whilst

there

11 visits to TripAdvisor

app on smartphone - further research on

restaurants and attractions

1 visit to EasyJet –

point boarding passes

Key upsell opportunities?


Implications for the future

1. Things we can’t control (e.g. terrorism)

2. Things we can predict (e.g. trends in consumer behaviour)


Source: GfK Leisure Travel Monitor Q1 Bookings 2015 - 2016

Acknowledging the unpredictable

Spain+ 25%

Egypt- 61%

Turkey- 33%

Portugal+ 27%

USA- 1%

Cyprus+ 15%

Italy+ 13%

Caribbean+ 24%

Total Market

+ 5%


Leisure Travel Monitor

If Spain gets close to, or reaches, capacity what will happen to the price?

Family l 7 nights all incl.

Family l 14 nights all incl.

£574 £613

£880 £998

2015 2016

£587

£891

£569

£904

Spain PortugalSpain Portugal


GfK Consumer Life

What impact will consumer trends have on bookings to Spain?

Currently a ‘do little’ destination

…that fits with consumer trends55% in 2015 say they visit a park, beach, nature or outdoors destination monthly or more often, up from 46% in 2011


GfK Consumer Life & ConsumerScope Travel Panel

But…..Spain’s challenge

53% of UK consumers now agree that they like to buy products that can

be tailored to their needs

(47% in 2010)

demand for package holidays is

growing slower than

independent travel


Implications

Digital is key A long research process

Joined-up online & offline

Booking is not the end


Thank you


Helen RobertsTravel & Hospitality LeadM +44 (0)7770 992962E [email protected]

Michael GroganDigital Lead M +44 (0)7823 537646E [email protected]