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the great american vacation study how travelers seek, shop and save

The great american vacation study how travelers seek shop and save

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Of Americans who take leisure travel, over 90% are vacationing at least once a year. In this study, we explored how these consumers research, plan and schedule their vacations, including how they decide where to go, who goes with them — and, ultimately, how they choose which airlines, hotels, resorts and cruises to book. Our key finding? Planning is personal. The majority of people book their own trips. And most of them (57%) start on search engines. Travel booking sites are a distant second (13%) and only 2% of today’s vacation-takers use travel agents. Get "The Great American Vacation Study: How Travelers Seek, Shop and Save" report now to take a deep dive into how to disrupt their consumers' paths to purchase and, ultimately, get travelers to book more with you.

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Page 1: The great american vacation study  how travelers seek  shop and save

the great american vacation study

how travelers seek, shop and save

Page 2: The great american vacation study  how travelers seek  shop and save

Theresa WablerVP, Global [email protected]

introduction

jet-setters = deal seekersIf you’ve ever been aT an aIrporT during a peak travel season, you already know that a lot of Americans are traveling at least once a year for non-business reasons — and that most of these trips are with family members. How do all of these people choose which airlines, hotels, resorts and cruises to book? We asked, and here are the answers.

price rules the air; value and location fills hotelsEighty-five percent of today’s travelers are looking for deals — and the most active deal seekers are people with household incomes over $100,000. On average, the price of an airline ticket is four times more important than departure or arrival times. For hotel guests, value and location are the top two factors.

planning gets personalGone are the days of calling a travel agent, providing a credit card number and receiving a full itinerary in exchange. These days, 91% of people plan their own trips by starting on online search engines and then comparing prices on three or more websites. And they often prefer getting cash back on a prepaid card to sweeten the deal even more.

loyalty programs have their placeTravelers ages 50+ and those with household incomes over $100,000 are more likely to belong to airline and hotel loyalty programs. These people also tend to take the most non-business trips, so they are able to earn and use more loyalty rewards. However, our research shows that “earning double loyalty points” does not generate more reservations.

We’ve packed a lot of data into this report, including a full set of questions about which incentives will help you get booked up. If you have questions or want further insights, please contact me.

2 | the great american vacation study

Page 3: The great american vacation study  how travelers seek  shop and save

also insidemethodology 4

travel planning 14

travel research 15

air travel factors 16

hotel reservation factors 17

airline loyalty 18

hotel loyalty 19

looking for deals 20

changing for deals 22

air travel incentives 24

hotel incentives 25

resort & cruise incentives 26

page 6key findings

today’s non-business travel trends

page 12travel habits

how vacations are planned today

page 27switch for $25

insight for travel booking sites

get booked up

how travelers seek, shop and save | 3

Page 4: The great american vacation study  how travelers seek  shop and save

parago conducted this study in april 2014 to identify how today’s vacation and pleasure travelers research, plan and book trips.

region

Pacific 18%

Mountain 9%

West North Central 9%

West South Central 7%

East North Central 15%

East South Central 4%

New England 7%

Middle Atlantic 18%

South Atlantic 12% 1,180 adults who travel for

personal reasons — not for business —

completed this online survey.

gender own vs. rent

50% 58%50% 42%

methodology

4 | the great american vacation study

Page 5: The great american vacation study  how travelers seek  shop and save

employment

employed full time 52%

employed part time 15%

unemployed 4%

homemaker 3%

student 10%

retired 14%

disabled, not able to work 2%

age

18–22 11%

23–29 17%

30-39 14%

40–49 15%

50–59 19%

60+ 24%

income

≤$19,999 10%

$20,000 to $49,999 19%

$50,000 to $99,999 31%

$100,000 to $199,999 20%

≥$200,000 6%

prefer to not disclose 13%

education

less than high school 1%

high school diploma 5%

some college 23%

vocational/technical degree 5%

college graduate 36%

graduate school 30%

marital status

widowed/divorced/separated13%

in a relationship or living with partner

11%never married

28%married

49%

how travelers seek, shop and save | 5

Page 6: The great american vacation study  how travelers seek  shop and save

key findings

of non-business travelers look for deals online. The top two places they go are online search engines and travel booking sites.

of non-business travelers are more likely to take additional trips if they find great deals — especially people with incomes $100,000+.

of people who earn $100,000+ research travel deals.

of vacation planners will set up a new online booking profile for $25.

of air travelers want a free checked bag on the current

trip — not rewards based on future trips.

Travel planners will choose a specific hotel, resort or cruise for a prepaid card over all other incentives.

which incentives are most e�ective?

get a customer profile for just $25

who is looking for deals?

OVER

6 | the great american vacation study

Page 7: The great american vacation study  how travelers seek  shop and save

of non-business travelers look for deals online. The top two places they go are online search engines and travel booking sites.

of non-business travelers are more likely to take additional trips if they find great deals — especially people with incomes $100,000+.

of people who earn $100,000+ research travel deals.

of vacation planners will set up a new online booking profile for $25.

of air travelers want a free checked bag on the current

trip — not rewards based on future trips.

Travel planners will choose a specific hotel, resort or cruise for a prepaid card over all other incentives.

which incentives are most e�ective?

get a customer profile for just $25

who is looking for deals?

OVER

how travelers seek, shop and save | 7

Page 8: The great american vacation study  how travelers seek  shop and save

key findings

of our survey respondents take one or more personal

trips per year.

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARAGO AIR

LINES

ISSUED B

Y : 3358438

CPM

: 01 O

F01

ISSUED BY : 3358438 C

PM : 01 OF01

E-TICKET NUMBER

01582537

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARAGO AIR

LINES

ISSU

ED B

Y : 3

3584

38

CPM

: 0

1 OF0

1

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATIONBOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARA

GO A

IRLI

NES

IS

SUED

BY

: 33

5843

8

CP

M :

01 O

F01

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

OF WOMEN OF MEN

vs.

always or almost always plan their own travel.

Of non-business travelers, who takes 2+ trips per year?• 88% of people with incomes

≥ $200,000• 82% of people with incomes

$100,000–$199,999• 79% of travelers age 60+

who belongs to travel loyalty programs?

where does vacation planning start?who vacations the most?

of vacation planning starts on online search engines (e.g., Google).

starts on travel booking sites (e.g., Travelocity or Expedia).

ONLY

Age and income are good predictors of airline and hotel loyalty membership:• 69% of people ages 60+ belong• over 71% of people with incomes $100,000+ belong• over 88% of people with incomes ≥ $200,000 belong

Only 31% of people in their 20s belong to hotel loyalty programs — but, 51% in their 30s do.

search i’m feeling lucky search flights

flying from

flying to

departing returning

adults (18+) children (0-17)

8 | the great american vacation study

Page 9: The great american vacation study  how travelers seek  shop and save

of our survey respondents take one or more personal

trips per year.

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARAGO AIR

LINES

ISSUED B

Y : 3358438

CPM

: 01 O

F01

ISSUED BY : 3358438 C

PM : 01 OF01

E-TICKET NUMBER

01582537

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARAGO AIR

LINES

ISSU

ED B

Y : 3

3584

38

CPM

: 0

1 OF0

1

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATIONBOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARA

GO A

IRLI

NES

IS

SUED

BY

: 33

5843

8

CP

M :

01 O

F01

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

OF WOMEN OF MEN

vs.

always or almost always plan their own travel.

Of non-business travelers, who takes 2+ trips per year?• 88% of people with incomes

≥ $200,000• 82% of people with incomes

$100,000–$199,999• 79% of travelers age 60+

who belongs to travel loyalty programs?

where does vacation planning start?who vacations the most?

of vacation planning starts on online search engines (e.g., Google).

starts on travel booking sites (e.g., Travelocity or Expedia).

ONLY

Age and income are good predictors of airline and hotel loyalty membership:• 69% of people ages 60+ belong• over 71% of people with incomes $100,000+ belong• over 88% of people with incomes ≥ $200,000 belong

Only 31% of people in their 20s belong to hotel loyalty programs — but, 51% in their 30s do.

search i’m feeling lucky search flights

flying from

flying to

departing returning

adults (18+) children (0-17)

how travelers seek, shop and save | 9

Page 10: The great american vacation study  how travelers seek  shop and save

how often do you travel for personal reasons?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

once every few years 17% 17% 13% 3% 0%

once a year 36% 29% 17% 14% 12%

2–3 times a year 34% 40% 51% 51% 41%

4–5 times a year 7% 10% 12% 21% 24%

6+ times per year 7% 3% 7% 10% 23%

18–22 23–29 30–39 40–49 50–59 60+

once every few years 20% 11% 9% 12% 11% 8%

once a year 30% 26% 19% 23% 19% 13%

2–3 times a year 35% 46% 54% 43% 46% 48%

4–5 times a year 9% 12% 10% 14% 16% 21%

6+ times per year 6% 5% 9% 8% 8% 10%

whose bags are always packed?

across all ages, most leisure travelers take at least one personal trip per year

most leisure travelers, regardless of income, take at least one personal trip per year

Non-business travelers who take 2+ trips per year:• 88% of people with incomes ≥ $200,000• 82% of people with incomes $100,000–$199,999• 79% of travelers age 60+• 72% of travelers ages 30–39• 71% of travelers ages 50–59

once every few years

once a year

2–3 times a year

4–5 times a year

6+ times a year

11% 46% 8% 21% 15%

10 | the great american vacation study

Page 11: The great american vacation study  how travelers seek  shop and save

with whom do you prefer to travel?

60% with a partner

21% with a group

19% on my own

with whom do you most often travel?

6%not sure

6%two+ friends

≤ 1%tour groups

5%one friend

9%on my own

38% spouse or partner only

28% immediate family

7% extended family

Only 1 in 10 vacationers travel alone, although twice as many said they’d prefer to go solo.

of all non-business travel is done with family, including partners and immediate or extended family members, too.73%

families tend to travel together

Non-business travelers who take 2+ trips per year:• 88% of people with incomes ≥ $200,000• 82% of people with incomes $100,000–$199,999• 79% of travelers age 60+• 72% of travelers ages 30–39• 71% of travelers ages 50–59

how travelers seek, shop and save | 11

Page 12: The great american vacation study  how travelers seek  shop and save

how often do you plan your own leisure travel?

who determines destinations and details?

82% of women vs. 74% of men always or almost always

plan their own travel

when planning travel, how do you primarily choose where to go?

2%choose based on

deals they receive

4%let someone else

choose

10%get friends’

recommendations

12%go places to pursue hobbies/interests

26% go to their

favorite places

25%go places they’ve

heard or read about

22%visit family or friends

w m

always 49% 42%

almost always 33% 32%

sometimes 11% 16%

rarely 4% 7%

never 3% 2%

3 out of 4 people always or almost always plan their

own non-business trips.

75% of vacation travelers never or rarely purchase travel packages that include both airline and hotel reservations.

Only 6% of travelers always or almost always buy air travel and accommodations as a bundled deal.

for all travelers

45% always

33% almost always

13% sometimes 6% rarely 3% never

12 | the great american vacation study

Page 13: The great american vacation study  how travelers seek  shop and save

how often do you buy air and hotel reservations together as a package?

air travel and hotels are booked separately

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

never 59% 42% 40% 38% 39%

rarely 22% 31% 35% 36% 38%

sometimes 13% 19% 20% 17% 19%

almost always 4% 6% 5% 8% 4%

always 2% 2% 1% 1% 0%

the highest income groups are the least likely to always buy air and hotel reservations as a package — it’s 0% for incomes ≥ $200,000

75% of vacation travelers never or rarely purchase travel packages that include both airline and hotel reservations.

Only 6% of travelers always or almost always buy air travel and accommodations as a bundled deal.

never rarely sometimes almost always always

43% 18% 1% 32% 5%

how travelers seek, shop and save | 13

Page 14: The great american vacation study  how travelers seek  shop and save

when planning travel, how do you primarily choose where to go?

Most people — across all demographic profiles — start

vacation travel planning on online search engines.

where does travel planning start?

2% loyalty

program sites

1% cruise line

sites

3% hotel sites

2% deal sites

2%travel agent/

planner

6% airline sites

2% travel research

books

57% online search engines

13% travel booking sites

12% travel research sites

23% of households earning ≥ $200,000 use travel research sites to start planning, suggesting that they are also seeking out new experiences.

22% of 30–39-year-olds use travel researchsites to start planning, suggesting that they are seeking out new experiences.

w m

online search engines 52% 62%

travel booking sites 16% 11%

travel research sites 14% 10%

airline sites 7% 5%

hotel sites 3% 3%

travel research books 3% 1%

deal sites 2% 2%

travel agent/planner 2% 2%

loyalty program sites 1% 3%

cruise line sites 1% 2%

start their travel planning on online search engines

62% men

52% women

definitions of travel-planning resources

online search engines general search engines, such as

Google, Bing, etc.

travel booking sites popular “best price” websites,

such as Travelocity, KAYAK.com, Expedia, etc.

travel research sites sites that offer destination and

sightseeing information, such as TripAdvisor, Lonely Planet, etc.

airline sites sites that offer single-airline

(and affiliate) reservations and ticket purchases

hotel sites websites that offer detailed hotel

services, amenities and booking info

travel research books offline resources, such as Fodor’s

Travel, Lonely Planet, etc.

deal sites sites that offer special or time-limited

discounts, such as Groupon, CheapCarribean.com, LivingSocial, etc.

travel agent/planner individuals who offer full-service

travel planning

loyalty program sites brand-specific websites that cater to

loyalty members, such as Starwood Preferred Guest, AAdvantage, etc.

cruise line sites non-branded cruise sites, such as

Cruises.com, or branded sites, such as CelebrityCruises.com

14 | the great american vacation study

Page 15: The great american vacation study  how travelers seek  shop and save

which resources do you use when you start to plan a trip?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

online search engines 67% 59% 56% 53% 50%

travel booking sites 16% 15% 15% 11% 7%

travel research sites 3% 14% 11% 15% 23%

airline sites 5% 4% 5% 6% 8%

hotel sites 4% 2% 3% 4% 4%

travel research books 1% 1% 2% 2% 4%

deal sites 2% 3% 3% 2% 0%

travel agent/planner 1% 2% 2% 2% 1%

loyalty program sites 1% 0% 2% 2% 3%

cruise line sites 1% 0% 2% 2% 3%

18–22 23–29 30–39 40–49 50–59 60+

online search engines 71% 61% 46% 53% 62% 51%

travel booking sites 8% 15% 17% 18% 13% 10%

travel research sites 9% 11% 22% 14% 9% 10%

airline sites 4% 4% 3% 5% 7% 9%

hotel sites 2% 3% 5% 4% 3% 2%

travel research books 0% 2% 2% 1% 3% 4%

deal sites 2% 3% 2% 1% 1% 3%

travel agent/planner 2% 1% 1% 2% 1% 4%

loyalty program sites 2% 1% 0% 2% 1% 4%

cruise line sites 0% 0% 1% 1% 1% 4%

23% of households earning ≥ $200,000 use travel research sites to start planning, suggesting that they are also seeking out new experiences.

22% of 30–39-year-olds use travel researchsites to start planning, suggesting that they are seeking out new experiences.

how travelers seek, shop and save | 15

Page 16: The great american vacation study  how travelers seek  shop and save

what is your primary factor when you purchase airline tickets?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

price 78% 71% 66% 62% 38%

departure/arrival times 9% 15% 15% 15% 23%

brand loyalty 7% 6% 9% 10% 16%

connections/layovers 6% 8% 9% 10% 16%

available upgrades 0% 0% 1% 2% 7%

18–22 23–29 30–39 40–49 50–59 60+

price 71% 80% 68% 69% 59% 49%

departure/arrival times 11% 11% 14% 14% 18% 21%

brand loyalty 10% 6% 6% 8% 11% 14%

connections/layovers 6% 4% 10% 8% 11% 14%

available upgrades 2% 0% 2% 1% 1% 2%

what influences air travel purchases?

compared to other travelers, people with incomes ≥ $200,000 choose price less often and factor in scheduling convenience, loyalty and upgrades

although price is most important, departure and arrival times gain value with travelers ages 50+

Across all ages and incomes, price is the most important factor in purchasing airline tickets. This insight suggests the air travel experience is not di�erentiated in consumers’ minds.

As vacation travelers get older and wealthier, they place additional importance on convenience — such as schedules, connections and layovers — and loyalty programs.

price departure/arrival times

brand loyalty connections/layovers

available upgrades

64% 10% 1% 16% 10%

16 | the great american vacation study

Page 17: The great american vacation study  how travelers seek  shop and save

what is your primary factor when you make hotel reservations?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

value 30% 34% 39% 35% 23%

location 10% 21% 23% 27% 32%

price 43% 26% 13% 7% 3%

brand loyalty 3% 4% 7% 14% 20%

customer reviews 6% 10% 9% 9% 8%

all other factors 8% 5% 9% 8% 14%

18–22 23–29 30–39 40–49 50–59 60+

value 29% 43% 33% 31% 29% 34%

location 11% 13% 23% 26% 29% 30%

price 30% 22% 18% 15% 11% 11%

brand loyalty 5% 5% 7% 14% 12% 9%

customer reviews 13% 13% 9% 6% 9% 5%

all other factors 11% 3% 9% 9% 9% 11%

what influences hotel reservations?

≤ 1% eco-friendly

practices

≤ 1% special

features (e.g., casino)

9% customer

reviews

2% free

amenities

1% unique/

boutique experience

9% brand

loyalty

4% star

rating

34% value, best quality for price

23% location

17% price

32% travelers who earn ≥ $200,000 use location — not value — as the primary factor when choosing a hotel

after value, younger travelers prefer lower prices and older travelers prefer more convenient locations

Across all ages and incomes, price is the most important factor in purchasing airline tickets. This insight suggests the air travel experience is not di�erentiated in consumers’ minds.

As vacation travelers get older and wealthier, they place additional importance on convenience — such as schedules, connections and layovers — and loyalty programs.

how travelers seek, shop and save | 17

Page 18: The great american vacation study  how travelers seek  shop and save

how many airline loyalty programs do you belong to?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

no loyalty programs 66% 61% 43% 29% 12%

1 loyalty program 20% 25% 33% 29% 26%

2–3 loyalty programs 12% 12% 21% 32% 46%

4–5 loyalty programs 1% 2% 4% 8% 15%

6+ loyalty programs 1% 0% 0% 2% 1%

18–22 23–29 30–39 40–49 50–59 60+

no loyalty programs 60% 56% 48% 42% 39% 31%

1 loyalty program 28% 25% 25% 27% 31% 29%

2–3 loyalty programs 9% 17% 22% 27% 23% 30%

4–5 loyalty programs 3% 2% 4% 4% 6% 9%

6+ loyalty programs 0% 0% 2% 0% 1% 1%

who belongs to airline loyalty programs?

88% of people with incomes $200,000+ belong to an airline loyalty program — but less than 40% of people with incomes < $50,000 do

about 60% of people ages 18–29 who travel for pleasure do not belong to an airline loyalty program — but over 60% do by the age of 50

Overall, 44% of non-business travelers do not belong to airline loyalty programs, with significantly higher non-participation (60%) for 18–29-year-olds.

Age and income are good predictors of airline loyalty membership:

• 69% of people ages 60+ belong• over 71% of people with incomes $100,000+ belong

48% of non-business travelers do not belong to any hotel loyalty programs, with significantly higher non-participation for ages 18–22 (74%) and 23–29 (69%).

Age and income are also good predictors of hotel loyalty membership:

• 68% of people ages 60+ belong• over 70% of people with incomes $100,000+ belong

15POINTS

5POINTS

10 POINTS

20POINTS25

POINTS

none 1 loyalty program

2–3 loyalty programs

4–5 loyalty programs

6+ loyalty programs

44% 22% 1% 28% 5%

18 | the great american vacation study

Page 19: The great american vacation study  how travelers seek  shop and save

how many hotel loyalty programs do you belong to?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

no loyalty programs 77% 71% 41% 30% 26%

1 loyalty program 11% 20% 25% 27% 23%

2–3 loyalty programs 10% 9% 30% 35% 45%

4–5 loyalty programs 2% 0% 4% 6% 5%

6+ loyalty programs 1% 0% 0% 2% 1%

18–22 23–29 30–39 40–49 50–59 60+

no loyalty programs 74% 69% 49% 41% 37% 32%

1 loyalty program 15% 16% 26% 26% 25% 25%

2–3 loyalty programs 8% 13% 22% 28% 34% 36%

4–5 loyalty programs 2% 1% 1% 5% 3% 7%

6+ loyalty programs 1% 0% 2% 0% 1% 1%

who belongs to hotel loyalty programs?

over 70% of people with incomes $100,000+ belong to a hotel loyalty program — but less than 30% of people with incomes < $50,000 do

only 31% of people in their 20s belong to hotel loyalty programs — but by their 30s, 51% do

Overall, 44% of non-business travelers do not belong to airline loyalty programs, with significantly higher non-participation (60%) for 18–29-year-olds.

Age and income are good predictors of airline loyalty membership:

• 69% of people ages 60+ belong• over 71% of people with incomes $100,000+ belong

48% of non-business travelers do not belong to any hotel loyalty programs, with significantly higher non-participation for ages 18–22 (74%) and 23–29 (69%).

Age and income are also good predictors of hotel loyalty membership:

• 68% of people ages 60+ belong• over 70% of people with incomes $100,000+ belong

15POINTS

5POINTS

10 POINTS

20POINTS25

POINTS

none 1 loyalty program

2–3 loyalty programs

4–5 loyalty programs

6+ loyalty programs

48% 25% 1% 22% 4%

how travelers seek, shop and save | 19

Page 20: The great american vacation study  how travelers seek  shop and save

where are people looking for deals?

how do you find travel deals? select all that apply

85% of non-business travelers look for deals online. The top two places they go are online search engines and travel booking sites.

Even 84% of people with incomes ≥ $200,000 actively seek out deals.

Over 96% of people who earn $100,000+ research travel deals.

65% of non-business travelers visit 3+ websites when researching travel prices.

94% of people planning vacations research travel prices on multiple sites.

online search engines

travel booking sites

deal sites opt-in email notifications

don’t look for deals

51% 27% 15% 50% 13% online search

enginestravel

booking sitesdeal sites

51% 27% 50%

18–22 23–29 30–39 40–49 50–59 60+

online search engines 57% 53% 45% 43% 54% 53%

travel booking sites 48% 55% 62% 55% 43% 41%

deal sites 28% 37% 33% 28% 18% 22%

opt-in email notifications 11% 13% 13% 14% 13% 14%

don’t look for deals 22% 16% 10% 10% 13% 18%

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

online search engines 51% 52% 49% 53% 46%

travel booking sites 39% 52% 54% 50% 61%

deal sites 25% 31% 29% 25% 30%

opt-in email notifications 13% 9% 15% 14% 20%

don’t look for deals 22% 14% 13% 10% 16%

travel booking sites are most popular (61%) with people who earn ≥ $200,000 — and least popular (39%) with those who earn ≤ $19,999

people ages 23–39 are most likely to use travel booking sites, which rank third after online search engines and deal sites

20 | the great american vacation study

Page 21: The great american vacation study  how travelers seek  shop and save

how many websites do you visit when researching travel prices?

everyone is shopping for travel deals

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

3+ websites 63% 64% 68% 65% 58%

1–2 websites 26% 30% 26% 32% 38%

do not research 10% 6% 5% 3% 4%

18–22 23–29 30–39 40–49 50–59 60+

3+ websites 66% 67% 68% 63% 70% 57%

1–2 websites 20% 30% 28% 31% 25% 37%

do not research 13% 3% 4% 6% 5% 6%

the higher their incomes, the more people shop around for travel deals

70% of people ages 50–59 visit 3+ websites while researching travel prices

85% of non-business travelers look for deals online. The top two places they go are online search engines and travel booking sites.

Even 84% of people with incomes ≥ $200,000 actively seek out deals.

Over 96% of people who earn $100,000+ research travel deals.

65% of non-business travelers visit 3+ websites when researching travel prices.

94% of people planning vacations research travel prices on multiple sites.

w m3+ websites 67% 63%

1–2 websites 27% 32%

do not research 6% 6%

women are more likely to visit 3+ sites

research on 3+ websites

research on 1–2 websites

do not research

65% 6% 29%

how travelers seek, shop and save | 21

Page 22: The great american vacation study  how travelers seek  shop and save

with which of the following statements do you agree? select all that apply

how do great deals affect travel planning?

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

likely to take more trips 47% 52% 57% 60% 66%

likely to extend vacation 25% 24% 26% 27% 27%

only book for deals 39% 32% 20% 22% 9%

not affected by price 21% 17% 22% 22% 24%

18–22 23–29 30–39 40–49 50–59 60+

likely to take more trips 60% 62% 57% 57% 50% 53%

likely to extend vacation 23% 34% 26% 24% 25% 23%

only book for deals 32% 30% 25% 28% 25% 16%

not affected by price 20% 16% 21% 18% 24% 28%

across all ages, over half of leisure travelers would be more likely to take more trips when offered a great deal

the higher their incomes, the more likely people are to take more trips when offered a great deal — from 47% (for incomes ≤ $19,999) to 66% (for incomes ≥ $200,000)

56% of non-business travelers are more likely to take additional trips if they find great deals — especially for people with incomes $100,000+.

Across all income levels, only 26% are likely to extend a trip for a deal.

22% of people say prices do not a�ect their travel decisions, suggesting that holidays or other important events drive vacation planning.

42% of vacation travelers would book more quickly for a best-price guarantee that o�ers a rebate for an advertised price di�erence.

23% would book within 24 hours for a $100 cash reward.

Travelers with incomes ≥ $200,000 prefer di�erent incentives, including double airline loyalty points.

I am likely to take

more trips if I find

a great deal

I am likely to extend my vacation

if I find a great deal

I only book

travel when I find a great deal

price deals have

no affect on my travel

decisions

56% 25% 22% 26%

22 | the great american vacation study

Page 23: The great american vacation study  how travelers seek  shop and save

which offer would make you book more quickly?

which incentives change behaviors?

You are thinking about going on vacation. You have the time available and have selected a destination. Which offer would make you book more quickly?

best-price guarantees — with the difference offered via rebate — are most popular with the lowest and highest age groups

≤ $19,999 $20,000– $49,999

$50,000–$99,999

$100,000–$199,999 ≥ $200,000

best-price guarantee 39% 50% 43% 37% 28%

$100 cash reward 27% 21% 23% 24% 30%

$100 in gift cards 18% 18% 19% 16% 8%

$100 onsite credit 10% 7% 8% 15% 11%

double airline points 2% 4% 5% 5% 20%

double hotel points 3% 0% 2% 4% 3%

18–22 23–29 30–39 40–49 50–59 60+

best-price guarantee 49% 42% 33% 38% 45% 44%

$100 cash reward 18% 25% 28% 28% 21% 20%

$100 in gift cards 18% 17% 25% 16% 18% 14%

$100 onsite credit 6% 8% 9% 9% 9% 11%

double airline points 4% 5% 2% 7% 4% 9%

double hotel points 5% 2% 2% 2% 2% 1%

56% of non-business travelers are more likely to take additional trips if they find great deals — especially for people with incomes $100,000+.

Across all income levels, only 26% are likely to extend a trip for a deal.

22% of people say prices do not a�ect their travel decisions, suggesting that holidays or other important events drive vacation planning.

42% of vacation travelers would book more quickly for a best-price guarantee that o�ers a rebate for an advertised price di�erence.

23% would book within 24 hours for a $100 cash reward.

Travelers with incomes ≥ $200,000 prefer di�erent incentives, including double airline loyalty points.

best-price guarantee, matching lowest pre-travel rate 42%$100 cash reward, if booked in 24 hours 23%$100 in gift cards, valid in destination city 18%$100 on-site credit for hotel amenities, if booked in 24 hours 9%double airline loyalty points 6%double hotel loyalty points 2%

how travelers seek, shop and save | 23

Page 24: The great american vacation study  how travelers seek  shop and save

which air travel incentives do people really want?

which offer would make you choose one airline over the other?

You are comparing flights. Two airlines have similar fares, plus departure times that fit your schedule. Which offer would make you choose one airline over the other?

59% one free checked

bag on this trip

26% up to $100 cash if you

fly twice in the next three months

15% double loyalty points if you fly twice in the next

three months

w m

free checked bag 66% 53%

cash if you fly twice 21% 30%

double loyalty points 13% 17%

66% of women vs. 53% of men prefer a free checked bag

acme air

20.5

When choosing between comparable hotels, 75% of non-business travelers will book a room for a $50 cash reward.

When considering an extra night’s stay:

• 44% will book for a $100 cash reward• 39% prefer a third night at half price

baggage claim

VS

Simply put: 60% want a free checked bag on the current trip — not rewards based on future travel.

24 | the great american vacation study

Page 25: The great american vacation study  how travelers seek  shop and save

which hotel incentives do people really want?

which offer would make you choose one hotel over the other?

which of these offers would motivate you to book an additional night?

Imagine you are a member of the Acme Hotel loyalty program and are planning to book a three-night stay. You have narrowed your hotel choices down to two different hotels — Acme and one

other — on the same block, with the same star ratings and similar customer reviews. Which offer would make you choose one hotel over the other?

Imagine you are planning a weekend vacation, but could extend your stay by one day.Which of these offers would most motivate you to book an additional night at your chosen hotel?

25% Acme Hotel with your loyalty reward points

75% other hotel with a $50 cash reward

mailed upon booking

acme air

20.5

When choosing between comparable hotels, 75% of non-business travelers will book a room for a $50 cash reward.

When considering an extra night’s stay:

• 44% will book for a $100 cash reward• 39% prefer a third night at half price

baggage claim

VS

Simply put: 60% want a free checked bag on the current trip — not rewards based on future travel.

book the third night, get $100

on a Visa® prepaid card

stay two nights, get a third night at

half price

book the third night, get $100 in gift cards

book the third night, earn

double loyalty points

book the third night, get $100

in free hotel amenities

44% 9% 5% 39% 5%

how travelers seek, shop and save | 25

Page 26: The great american vacation study  how travelers seek  shop and save

resort & cruise visitors prefer cash in hand

which offer would motivate you to choose one resort over another?

You are researching a vacation that you want to spend on a beach. You’ve narrowed your choices down to two comparable resorts with similar amenities, customer reviews, round-trip air travel and other prices.

Which offer would motivate you to choose one resort over the other?

59% $100 Visa prepaid card mailed to you

upon booking

26% $100 resort credit to use

for on-site amenities and excursions

15% $100 credit for

booking a future vacation

which offer would motivate you to choose one cruise line over another?

You are planning to go on a cruise. You are comparing two similar itineraries on two different cruise lines. Which offer would motivate you to choose one cruise line over the other?

46% $250 Visa prepaid card mailed to you

upon booking

32% $250 onboard credit

during your trip

21% $250 value for a shore excursion

46% of cruise shoppers also prefer a cash reward on a Visa® prepaid card.

59% of resort shoppers prefer a cash reward on a Visa prepaid card.

56% of people planning vacations will set up a new online profile for a $25 cash reward — assuming the same trip, including pricing, is o�ered.

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARA

GO A

IRLI

NES

ISSU

ED B

Y : 3

3584

38

CPM

: 0

1 OF0

1

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARA

GO A

IRLI

NES

IS

SUED

BY

: 33

5843

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CP

M :

01 O

F01

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

26 | the great american vacation study

Page 27: The great american vacation study  how travelers seek  shop and save

46% of cruise shoppers also prefer a cash reward on a Visa® prepaid card.

59% of resort shoppers prefer a cash reward on a Visa prepaid card.

56% of people planning vacations will set up a new online profile for a $25 cash reward — assuming the same trip, including pricing, is o�ered.

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537

FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARA

GO A

IRLI

NES

ISSU

ED B

Y : 3

3584

38

CPM

: 0

1 OF0

1

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

FIRST CLASS TICKET

PARAGO AIRLINES

DESTINATION

TORONTO

BOARDING DATE

11.21.2014

BOARDING GATE

TORONTO

NAME OF PASSENGER

BEN

FROM

NEW YORK CITY

TO

TORONTO

E-TICKET NUMBER

01582537FLIGHT

IL11221

CLASS

FIRST

SEAT

2B

ADDITIONAL SEAT INFORMATION

BOARDING TIME

4:25 PM

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BOARDING PASS

PARA

GO A

IRLI

NES

IS

SUED

BY

: 33

5843

8

CP

M :

01 O

F01

ISSUED BY : 3358438 CPM : 01 OF01

E-TICKET NUMBER

01582537

travelers will switch websites for $25

would you switch sites for a $25 prepaid card incentive?

You normally book travel through your favorite website, where you have a saved profile — including credit card information, travel preferences, loyalty member numbers, etc. Imagine you are

comparing vacation packages and a different website has the identical deal, plus a special offer. Would you book on the alternate site for a $25 Visa prepaid card incentive?

won’t switchwill switch for $2556% 44%

how travelers seek, shop and save | 27

Page 28: The great american vacation study  how travelers seek  shop and save

© 2014 Parago, Inc. All rights reserved.

we create engaging solutions that inspire action & impact results for

many of the largest brands in the world

For assistance with travel pricing strategies and incentive solutions, give us a call.

Theresa WablerVP, Global Marketing

972.538.3902 [email protected]